General take-aways on policy design
Policies need to be established with cultural or national differences in mind. To make policies effective and avoid unwanted side effects it is important to:
- Build trust and make policies transparent – explain direct and indirect long-term costs and benefits.
- Involve consumers. This can create a sense of procedural justice in, and thus greater support for, policies developed through a participatory process
- Increase energy literacy to allow consumers make informed choices
- Provide relevant information for the right segments and make it more accessible.
- Target analysis for specific countries and for specific groups of households so measures are effective.
Getting appliance policies right to save even more
- Ecodesign and labelling of household appliances can deliver significant savings by 2030.
- Ecodesign requirements have very low implementation costs compared to the energy savings. In the CHEETAH analysis it is the most effective policy.
- Strengthening ecodesign requirements will reduce demand further but may cost households and reduce disposable income in the short term.
- Rebates and other support can help protect low-income households but are generally not needed for high-income households.
Insulation needed for significant savings in buildings – capital a challenge
- CHEETAH results clearly indicate that significant energy savings in the residential heating sector can be achieved only by insulation of buildings. Ambitious renovation programmes are needed to deliver these savings and these will require large investments.
- Improved heating systems and/or thermostats is not enough.
- Low income households may not be able to raise the investment capital and financial support may be needed.
- In rented buildings, the landlord-tenant problem must be addressed where tenants pay the energy bills.
- Information and financial incentives won’t be enough. Norms and binding measures will be required
- Thermostats can deliver modest savings but at lower costs. However, with lower energy bills from thermostats, later building renovations become less profitable. Therefore, strong promotion of heat control devices without additional measures to invest in deeper refurbishment can be a double-edged sword leading to unintended effects later on.