Energy Efficiency Governance

Improved energy efficiency (EE) is a critical response to the pressing climate change, economic development and energy security challenges facing many countries today. However, achieving EE improvements can be difficult. It requires a combination of technology development, market mechanisms and government policies that can influence the actions of millions of energy consumers, from large factories to individual households. Governments, EE stakeholders and the private sector must work together in order to achieve the scale and timing of energy efficiency improvements needed for sustainable and secure economic development. Much has been written about the role of market forces in delivering energy efficiency and market-based instruments play a central role in most national energy efficiency policies. However, much less is known about the legal, institutional, and co-ordination arrangements needed to scale-up energy efficiency. Compiling and presenting what is known about these important issues – referred to collectively as energy efficiency governance – is the purpose of this Report. Experience shows that an EE policy is more likely to be successful if an effective system of EE governance is established (Box i). From the legal frameworks and institutions that develop and implement policy, to the stakeholders who participate in implementation in the market place, EE governance is a complex and yet critical part of the energy efficiency delivery system.