Energy Efficiency Policies. What works and what does not - Key messages. World Energy Council, World Energy Perspective

This study is aiming to describe and evaluate energy-efficiency trends and policies at global level. While the French Agency for Environment and Energy Management) the Agency for Environment and Energy Efficiency, France (ADEME) coordinated the project, the study was carried out over two years with the technical assistance of Enerdata. The first objective of the study is to identify recent trends in energy-efficiency performance for WEC member countries. A selection of indicators has been produced for that purpose: they are available on the WEC web site. This report looks at these indicators and analyses them by main world region. The second objective is to describe and evaluate energy-efficiency policies carried out in a large sample of countries throughout the world. All information related to energy-efficiency policy implementation has been integrated on the WEC web site. 85 countries are covered, either through a survey that was carried out in 50 countries or through a literature review for the remaining countries. This survey was completed by selected experts, with detailed case studies focused on four policy measures: - Innovative financing schemes in buildings; - Measures to accelerate the penetration of efficient air conditioners and their efficient use; - Smart billing; - Measures to improve the efficiency of road transport of freight. Beyond a review of existing energy-efficiency measures, this evaluation aims to pinpoint the most interesting experiences case studies and draw some conclusions on the advantages and drawbacks of different policies. These conclusions should enable countries embarking on energy-demand management policies to benefit from the experience of the most advanced countries. Despite the still important role of market instruments (voluntary agreements, information, dissemination) and economic incentives, regulations are increasingly used, in particular in sectors in which the market fails to give appropriate signals (e.g. buildings, appliances, and so on). Because of limited public budget, there is increasing involvement of the private sector in supporting investments in energy efficiency, through energy service companies (ESCOs) and energy utilities. The study highlights a number of innovative measures, such as smart billing, energy-savings targets by sector, mandatory installation of efficient equipment, and obligatory energy savings for energy companies. The study concludes with eight main recommendations: 1. Energy prices should reflect real costs and give more incentives to consumers. 2. Consumers should be better informed. 3. Innovative financing tools should be implemented to support consumers' investments. 4. The quality of energy-efficient equipment and services should be controlled. 5. Regulations should be enforced and regularly strengthened. 6. Behaviour should be addressed as much as technologies, relying on information and communications technologies (ICTs). 7. Monitoring achievements is necessary to evaluate the real impact of energy-efficiency policies. 8. International and regional cooperation should be enhanced. Given its broad geographical coverage and the correlation between indicators and policy measures, this report represents an original approach to energy-efficiency evaluation.