Combating Climate Change with Energy Efficiency - How to Make It Work

COP21 agreement raised the awareness of the widest international community on an urgent need to act and deliver results that would mitigate adverse consequences of climate change. Energy efficiency is once again declared as the most readily available, rapid and cost-effective way to achieve desired greenhouse gases reductions. However, although significant efforts are made worldwide to put sound energy efficiency policies in place, the desired results in terms of saved kWh, and consequently in terms of reduced tonnes of CO2 emitted, are missing. The paper investigates and explains the reasons behind this energy efficiency policy failure, known as energy efficiency gap, by using examples from current energy efficiency and other policies in Croatia. The first reason is in the lack of understanding of energy efficiency market, the analysis of which needs to be a starting point in policy making. Selection of policy instruments needs to be based on feedback from those that are actually intended to implement them, i.e. participatory approach needs to be mainstreamed in policy making as it will reveal the reality of the implementing environment (existing attitudes, experienced brakes and desired levers). Secondly, there is generally insufficient knowledge about policy instruments impacts (both potential and achieved). Evaluation of expected impacts of a certain policy instrument needs to be realistic taking into account time needed for target group to fully adopt the instrument and utilise it to the highest level envisaged by the policy. And the last, reason for energy efficiency policy failure is to be found in continuously neglecting benefits of improved energy efficiency beyond energy savings. Energy efficiency requires genuine not declarative commitment that will integrate it in all other policy spheres. It is essential to start treating energy efficiency not as an end (i.e. as a policy for itself), but as a means to achieve multiple social, economic and environmental benefits. Changing the perception of energy efficiency by declaring it as an inherent, unavoidable feature of an overall low-carbon development process and supporting it with available emission related financing is a way forward.(author).