Key findings from the EMA Energy Reduction and Decarbonisation Policy survey outcome (Part 2)[1]
As we approach the milestone of 100 days since the new government took office, we are reflecting on the developments in the energy sector that have been highlighted by the government and that can potentially improve energy reduction practices across organisations. We are eager to see how these initiatives align with the feedback we received from our members regarding the improvement and implementation of energy reduction practices across their organisations and sectors.
What have we learnt so far from the government?
MEES and EPC overhaul
The government has recently announced plans to update both Energy Performance Certificates (EPCs) and the Minimum Energy Efficiency Standards (MEES) rules to enhance the efficiency of the system. The Department for Energy Security and Net Zero will be launching a consultation by the end of the year to propose improvements to EPCs, aiming to make them more accurate and reliable. Additionally, officials from the department have disclosed that the MEES regulations will undergo a comprehensive overhaul[2].
Development of climate plans in organisations and implementation of local power initiatives
During his address at the Labour Party conference this week, the Secretary of State for Energy Security and Net Zero, Ed Miliband, emphasised various avenues that could potentially drive enhanced energy efficiency and carbon reduction practices within organisations. One key proposal put forth by Miliband was the requirement for every major company to develop comprehensive climate action plans. Additionally, he advocated for the implementation of localised power initiatives spearheaded by local authorities[3].
Possible creation of high-quality jobs creation in low carbon sector
In a bid to boost the economy and promote sustainability, the government has introduced a "British jobs bonus" initiative. This program will provide capital grants to companies operating in low-carbon industries such as wind and solar energy, hydrogen, and carbon capture and storage. Furthermore, companies seeking to supply clean energy in the UK will be required to demonstrate their commitment to creating high-quality jobs within the country, as part of the existing contracts for difference system.[4]
Potential streamlining of reporting schemes
There are also rumours about a possible streamlining of certain energy and carbon reporting schemes, but further information on this has yet to be revealed.
As is always the case with policies or schemes, the true potential and practicality will be demonstrated through actions and specific details, and those are yet to come. Until then let us amplify the voices of EMA members who have firsthand experience and expertise in energy reduction practices. They can provide valuable insights into how the government can enhance and integrate energy reduction practices within organisations and sectors.
What changes would our members and survey respondents like to see from the government in enhancing and implementing energy reduction practices?
Revise current schemes and ensure action on energy and carbon reduction
- Revise DEC and EPC certification processes and adjust them to current-day requirements, and make them mandatory for everyone, including the public sector, no exceptions!
- Increase penalties for non-compliance. Use EPCs more effectively and include retrofit improvements.
- Bring back a mandatory reporting system for Public Sector organisations.
- Reverse the dilution of policies and targets that has happened under the previous administration.
- As has been seen by ESOS and CRC, legal requirements improve take-up. But there needs to be a cost of non-compliance. Mandate implementation of any recommended measures in ESOS.
- Eliminate a loophole in the new ESOS requirement for an Action Plan requirement permitting a qualifying organisation to state "We will not implement any of these measures". We are past the point of inaction.
- Using SECR in a more prescriptive manner may help. Strengthen mandatory reporting (SECR and directors report) requirements to evidence action and achievements in areas of energy reduction.
- Raise mandatory standards for leases/ building sales. More ambitious than MEES.
- Encourage the implementation of energy saving technologies and on-site renewable generation despite short-terms costs.
- Develop existing planning and building legislation to strengthen the sustainability measures for all new builds e.g., compulsory insulation, solar PV and other self-generation.
- Increase CCL rates for electricity and gas to incentivise reduction/ penalise non-action.
- Provide proper help with grid connections and infrastructure, otherwise there is a limit to carbon reduction.
Convey clear communications and enforce deadlines
- Be clear about future policy targets.
- Start to enforce deadlines and clear regulations so that organisations have no excuses to not comply.
- Develop an independently costed, science-backed and verified strategy that can deliver 2050 Net Zero objectives on time and within budget.
- Mandate energy management strategy development and provide advice on changes required and grants available.
Invest in energy and carbon management skills development
- Give more opportunities for training and re-training for the current workforce.
- Include energy and carbon management skills in the school curriculum for the next generation.
- Introduce basic energy efficiency training in all public sector organisations for new starters, including refresher training.
- Require a recognised and trained energy manager in all government sites at every level, local, regional, national. The training should involve energy management, building services. energy auditing, energy procurement, energy planning and energy systems control and maintenance.
- Include the importance of energy and carbon management, sustainability, sustainability finance and reporting to students and managers of any type of organisation.
- Support mandatory courses for the energy and sustainability roles.
- Provide training and education in local communities to raise awareness of global emissions. Introduce programmes promoting green skills basics such as energy and carbon management nationwide.
- Support energy efficiency with a national training programme. Demand higher standards from housebuilders and contractors too. Get the regulations around heat pump qualifications changed so that people do not need to train as gas engineers first.
- Provide funding for energy management/carbon reduction/biodiversity courses and incentive payments for teacher training in these subjects (such as science or maths teachers get).
- Encourage vocational training.
- Introduce skills passports and align these with rates of pay. Make energy reduction and carbon management awareness compulsory on all skills passports.
- Don't leave training to manufacturers and technology providers.
- Set up mentoring teams to pass on expertise.
- Enhance the profile of energy managers and associated roles.
- Increase understanding of carbon management and reduction (as opposed to offsetting/greenwashing) to eliminate greenwashing, starting with claims of offsetting carbon by buying credits so someone plants a tree in another part of the world.
Use incentives as well as rules
- Any incentives to be simple to operate and leave it up to organisations to determine how to implement - for example, the energy efficiency interest-free loans scheme was relatively simple to apply, but it all went wrong when it was made a commercial, interest-paying loan for small businesses and stopped it for the public sector.
- Beware of overblown schemes such as the PSDS, which has led to higher cost, and longer lead time implementations that concentrate on some poor technology choices.
- Incentivise energy reduction by linking energy consumption to taxation e.g., reducing corporation tax in line with reductions in energy intensity.
- Rules should concentrate on making existing mechanisms work better.
Provide funding
- Introduce and advertise grants or interest-free loans or match funding for organisations to implement energy reduction practices, energy efficiency and decarbonisation projects.
- Provide accessible funding for the replacement of gas heating systems for electric/other systems.
- Invest in energy efficiency in all public buildings.
If you are interested in sharing your views on the future of the UK energy and carbon reduction policy, please email us at [email protected].
[1] For part 1 of the EMA survey outcome visit: https://www.theema.org.uk/from-energy-policy-to-practice-enhancing-net-zero-strategy-and-decarbonisation-and-ensuring-energy-security/
[2] https://landlordknowledge.co.uk/labour-announces-major-overhaul-of-epcs-ahead-of-2030-rental-property-deadline/
[3] https://labour.org.uk/updates/press-releases/ed-miliband-mp-secretary-of-state-for-energy-security-and-net-zero-speech-at-labour-party-conference-2024
[4] https://www.theguardian.com/politics/2023/jun/19/labour-pledges-british-jobs-bonus-as-it-sets-out-green-energy-strategy