ABSTRACT
To achieve European Union (EU) greenhouse gas emissions of 80–95% below 1990 levels by 2050, CO2 emissions from residential energy consumption must be substantially reduced. Recognition of this has led to the introduction of a range of policy instruments at both EU and member state level. These policies are examined for the EU and the UK, first by grouping them into three ‘pillars of policy’ – standards and engagement, markets and pricing, and strategic investment (each of which focus on different ‘domains of change’ embodying different economic processes) – and then by assessing the strengths and weaknesses of each pillar in terms of instrument coverage and effectiveness. Strengths and weaknesses common to both UK and EU policy landscapes are found, including a comprehensive but broadly ineffective standards and engagement pillar of policy, and an ineffective markets and pricing landscape (including effective subsidization of energy consumption in the UK, permitted by the EU), with poor coverage. The strategic investment landscape is found (until recently) to be substantially stronger in the UK compared with EU instruments and requirements. Priority reform actions are also proposed to address the weaknesses identified. The paper also offers discussion of recent policy developments in the UK.
