Energy Efficiency Strategy

THE ENERGY WHITE PAPER Energy White Paper sets out four key goals for energy policy to: Cut the UK’s carbon dioxide emission by some 60% by about 2050; Maintain security of energy supplies; Promote competitive markets to raise the rate of sustainable economic growth and to improve our productivity; and Ensure that every home is adequately and affordably heated It also placed energy efficiency and renewables at the forefront of tackling climate change. Setting a target for renewables to supply 10% of UK electricity by In Scotland the Executive has set a firmer target for renewables to supply 40% of Scottish electricity by 2020.

LINK WITH EXECUTIVE'S SUSTAINABLE DEVELOPMENT POLICY Jack McConnell, First Minister 2002 Priorities are: Resource use: “ We need to understand where our materials come from; how they are replaced; what happens to the community which supplied them; how they were brought into use; what we did with them and how they went to their next use” Energy: “ The excessive use of fossil fuels is at the core of many sustainable development problems. We can use less energy and generate power from renewable sources. We must ensure that the quality of our housing stock provides affordable warmth to the poorest in our communities. " Travel: “ Moving people and goods, and delivering services generate transport demands. Better land use planning; alternative service delivery and sustainable transport systems can reduce our impacts."

WHY IS THIS IMPORTANT TO SCOTLAND? Annual UK spend on energy consumption = £65 billion Estimated that 20% (£13 billion) is wasted each year due to inefficiency Perhaps £1.3 billion in energy resources lost annually to the Scottish economy Equivalent to 50% of the total income from North Sea oil or one third of the total tourism spend in Scotland Improved energy efficiency has positive impacts for: Carbon emissions Business resource efficiency Fuel poverty Public sector efficiency Air quality Low carbon economy

Energy use in Scotland by sector:

Domestic consumption 15% up Industrial consumption 30% down Transport 12% up Services 10% up SCOTTISH ENERGY CONSUMPTION TRENDS SINCE 1990

ENERGY EFFICIENCY: Vital to meeting UK carbon emission targets Potential impact of incremental low carbon technologies in the UK to 2050

Define the Executive’s policy objectives for energy efficiency Ensure Scotland makes a significant contribution to UK carbon emissions targets Set agreed methods for measuring progress Identify priority sectors and methods for Executive intervention Increase co-operation across the Executive and with other bodies (including UK government) Improve the impact of the Executive’s investment in energy efficiency Communicate clear explanation of the Executive’s energy efficiency policy ENERGY EFFICIENCY STRATEGY: OBJECTIVES

ENERGY EFFICIENCY STRATEGY: SCOPE Strategy will cover devolved energy efficiency measures aimed at: Business Public sector Transport Domestic sector For example: Executive funding of Energy Saving Trust and the Carbon Trust; Agencies that use Executive resources to deliver energy efficiency – e.g the Enterprise network and the Business Environment Partnership; Transport related energy efficiency measures; Energy efficiency aspects of sustainable development; The impact of EU transmissions trading; Fuel poverty initiatives; Building energy efficiency standards; District heating/combined heat and power schemes.

Strategy also needs to fit with UK policy and existing UK energy efficiency initiatives Such as: Fuel tax Road tax Company car tax Climate change levy Energy efficiency commitment Energy labelling of goods Enhanced capital allowances Community Energy programme Carbon Trust Energy Saving Trust

Energy efficiency strategy Key questions: What should be the priority sectors? What are the barriers? How can these be overcome? Should the strategy set targets? In what form? What new initiatives could feature? Your views are welcome