Cite report
IEA (2022), The value of urgent action on energy efficiency, IEA, Paris https://www.iea.org/reports/the-value-of-urgent-action-on-energy-efficiency, Licence: CC BY 4.0
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Policy Toolkit
Introduction
Energy efficiency is centrally important to improving the lives of all people, providing affordable and reliable energy access, supporting economic growth and resilience, enhancing security of supply and accelerating clean energy transitions. A strong, early focus on energy efficiency is essential for delivering a net zero energy system by 2050.
To support stronger action on efficiency the IEA has designed a policy toolkit for governments, launched at the IEA’s 7th Annual Global Conference on Energy Efficiency in June 2022. The toolkit provides a practical approach to accelerate action on energy efficiency by guiding governments in the design of effective policy measures, the support of policy decisions and the delivery of policy actions.
The toolkit comprises two parts: The first is ten strategic principles, based on the recommendations of the Global Commission for Urgent Action on Energy Efficiency, that bring together key learnings from global experience as to how maximise the positive impact of all energy efficiency polices and programmes. The second is a set of sectoral policy packages that highlight the key policies available to governments, how they can be integrated into an effective overall coherent suite of policies and actions to deliver faster and stronger efficiency gains.
The policy packages present a practical approach to policy design and implementation built on the foundation of three essential elements: Regulation, information and incentives. They highlight how combinations of these three types of measures can combine into the most effective package.
Implementing Energy Efficiency via Strategic Principles and an effective coordinated Policy Packages Toolkit
Ten Strategic Principles
Based on IEA analysis of best practice and the work of the Global Commission for Urgent Action on Energy Efficiency1 the following ten strategic principles can help guide policy makers to enhance and expand their energy efficiency policies and programmes, and to quickly accelerate energy efficiency gains through new and stronger policy actions.
1. Prioritise cross-cutting energy efficiency action for its economic, social and environmental benefits
An all-of-government approach, prioritising cross cutting action, will maximise energy efficiency gains throughout all sectors of society, enhancing social and economic development, energy security and resilience, and accelerating decarbonisation of the energy sector.
2. Act to unlock efficiency's job creation potential
Energy efficiency can quickly deliver job growth and can continue to be a long-term, sustainable employment sector. Capacity building and skills development are essential to effective policy implementation.
3. Create greater demand for energy efficiency solutions
Efficiency action will be most rapidly scaled up through a focus on increasing demand for efficient products and services and enabling greater levels of market activity.
4. Focus on finance in the wider context of scaling up action
Mobilising finance is an essential element of efficiency action, and policies aiming to do so will be most effective if they are part of a broad, coherent approach to driving market scale, combining measures to increase demand with actions to remove investment barriers, creating market conditions to attract and increase private sector investment.
5. Leverage digital innovation to enhance system-wide efficiency
Policymakers can take advantage of the potential of digital innovation to enable smart control, better energy management and wider energy system optimisation. Policies can enable and incentivise new solutions while also protecting consumers and system security.
6. The public sector should lead by example
Governments leading through investment in public sector efficiency and driving innovation and higher standards will build experience, markets, knowledge and confidence in energy efficiency solutions.
7. Engage all parts of society
Implementation of energy efficiency action needs to happen at all levels of society, with cities, businesses, and local communities all playing a particularly important role in its success.
8. Leverage behavioural insights for more effective policy
People are at the centre of energy efficiency action, benefitting from greater access, lower costs and more comfortable, healthier environments. Consumer behaviour plays an important role and insights from behavioural science can help design smarter, more effective policies.
9. Strengthen international collaboration
International collaboration and exchange of best practice allow countries to learn from each other and to harmonise approaches and standards where appropriate. This can speed up implementation of energy efficiency policies and transformation of markets.
10. Raise global energy efficiency ambition
Benefits from energy efficiency policies are greatest when the ambition is high, capturing the significant untapped potential to deliver economic, energy and environmental benefits.
