WHAT ENERGY EFFICIENCY MEANS TO THE WORLD
Exploiting the full potential of energy efficiency; New IEA report offers detailed guidance for governments on how to partner with private sector to finance energy efficiency measures
19 January 2012 (International Energy Agency)
"Improvements in energy efficiency can achieve a whole array of economic, societal and environmental benefits, often at low cost. In many cases it seems unexplainable that consumers, business and government authorities do not exploit the full potential of energy efficiency, yet there are a range of market and human behavioural failures that stop us from doing so.
"Improving energy efficiency often requires an initial upfront cost, for example, for a more advanced or new piece of technology, a change in process, or the refurbishment of a building, that is paid back later through reduced energy bills. Even though the rate of return in investment in energy efficiency can be high, lack of finance can still be a key barrier to investment in energy efficiency."
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"…The IEA recommends that governments facilitate private investment in energy efficiency through collaboration with private financial institutions to develop public-private partnerships (PPPs) and other frameworks that facilitate energy efficiency financing…Joint public-private approaches for energy efficiency finance…aims to support policy makers at all levels of government and other relevant stakeholders who seek practical ways to develop, support, monitor or modify energy efficiency policies…
"…The active participation of commercial banks and financial institutions is needed for the long-term growth and development of the market for delivering energy efficiency financing and implementation services. PPP mechanisms [that use public policies, regulations and/or funding to leverage private-sector financing can] obtain such leveraging of commercial financing…[to] reduce the cost of energy efficiency…"