- 20 May 2010
Thurstan Wright, Analyst at The Climate Group, discusses recent efforts to promote energy efficiency.
Energy efficiency offers the biggest opportunity for greenhouse gas abatement in the near-term and many options can be realized at low cost. Three recent examples in China, Monaco and the US show how governments and businesses are working together to incentivize action in this field.
China- Government subsidies for energy companies
The Chinese Government announced their increasing support for energy service companies in April this year. Subsidies and favourable tax policies are set to be offered in an effort to reduce greenhouse gas emissions. Energy providers that are involved in contracted energy management projects will be exempt from corporate income tax in the first three years of operation. Also, these companies will be taxed at half the normal corporate income tax rate for three years after that. Furthermore, these companies will be exempt from business tax for an unspecified period of time.
Monaco-Forum encourages the use of existing technologies
Johnson Controls and the Prince Albert II of Monaco Foundation launched the Euro-Mediterranean Energy Efficiency Forum April 26, 2010.
"The Euro-Mediterranean Energy Efficiency Forum brings together some of the world's leading experts to discuss strategies that deliver significant energy efficiencies," said David Myers, President, Johnson Controls Building Efficiency. "We believe that building technologies represent a huge opportunity for cutting emissions. Energy use in commercial buildings could be reduced by a fifth (20%) simply by using existing technologies, which would reduce carbon dioxide emissions by 30%,” he concluded.
US-Government Bill on home efficiencies
The US energy efficiency Bill was passed on May 6 this year. The bipartisan Home Star Energy Retrofit Act of 2010 or ‘HOME STAR’ bill will provide $6 billion in incentives to encourage consumers to buy energy efficient appliances and undertake energy efficiency home refurbishment. A two-tier system would provide rebates of up to $3,000 per home for immediate energy efficiency measures such as insulation and equipment, while a second level of up to $8000 would be available for whole-home retrofits. A similar bill with lower tiers ($1000-$1500 - $3000) was also introduced in the Senate.