Letter from The Royal Society
Dear Mr Johnson
We are delighted to respond to the Committee's
call for evidence for the inquiry into "Energy Efficiency".
This response has been prepared in consultation with our Energy
Policy Advisory Group (EPAG) and other experts in the field.
Our comments are primarily based on previous
Royal Society studies. We would be pleased to provide copies of
these and/or expand on any of the points outlined below:
— The main obstacle at present to the
achievement of energy savings is that energy is too cheap to provide
the motivation for maximising efficiency. Our economic instruments
report (2002)[32]
shows that placing primary emphasis on well-designed economic
instruments can provide considerable motivation and incentive
across the industrial and domestic sectors for energy efficiency
savings.
— The current UK Climate Change Levy
goes some way towards promoting energy efficiency measures across
the economy; however as we outlined in our 2001 report[33]
on the European Renewables Directive, it excludes major energy
users such as households and transport. We recommend that the
Government acknowledge and act on this issue in the forthcoming
review of the UK Climate Change Programme.
— Although market mechanisms should
have a principal role in driving energy efficiency measures, implementing
the correct regulation is also important. Part L of the Building
Regulations has been an effective measure for reducing building
energy consumption in the last two decades, but it has only a
limited impact on the existing building stock. In the domestic
sector, the introduction of Home Condition Reports in 2007 (requiring
the seller of a house to provide potential buyers a report on
energy efficiency and other conditions on the house) will highlight
and stimulate energy efficiency measures and generate information
on home energy ratings. However further financial incentives are
required to drive people in this sector to make efficiency investments
to the fabric of their property, the benefits of which may only
be realised after long periods of time.
25 October 2004
Document http://www.royalsoc.ac.uk/templates/statements/statementDetails.cfm?StatementID=211
http://www.royalsoc.ac.uk/templates/statements/statementDetails.cfm?StatementID=124
32 Royal Society (2000a). Economic instruments for
the reduction of carbon dioxide emissions. Back
33
Royal Society (2000). The role of the Renewables Directive in
meeting Kyoto targets Back
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