Climate Policy Principles
Energy efficiency is the most important near-term solution to global warming. A recent study by the McKinsey Global Institute found that increased efficiency in buildings, industry, transportation, and energy production could meet almost all increased energy demand in the United States while preventing more than 1.5 billion tons of carbon dioxide emissions. Using the energy-efficiency resource also is an important means to bring down the cost of reducing greenhouse gas emissions.
The Alliance to Save Energy (Alliance) believes that government policy(ies) to curb greenhouse gas emissions could spur unprecedented levels of energy efficiency, if designed appropriately. For this reason, the Alliance Board of Directors has adopted the following set of principles to guide the development of climate legislation that will promote the greatest energy efficiency possible.
Pricing Greenhouse Gas Emissions
The Alliance supports government policy that will create a price signal for greenhouse gas emissions as an effective tool to spur energy efficiency investments.
Cap vs. Tax
The Alliance is neutral (has no preference) between a carbon tax and a carbon cap and trade legislative framework.
Scope
The scope of the policy should be economy-wide.
US Leadership
The Alliance supports early actions by the US to reduce emissions. The US should encourage adoption of emissions abatement policies by China, India and other major emitters.
Complementary Measures
The Alliance supports complementary energy efficiency policies to address specific market failures such as principal-agent barriers, information barriers, and public goods barriers.
Offsets
If offset provisions are included in legislation, then energy efficiency projects should be eligible to receive offset credits. The Alliance advocates insuring that all offsets are verifiable, sustainable and additional.
Cost Control
Energy efficiency is a cost-control strategy.
Allocation
The Alliance advocates that allowances be used to fund energy-efficiency programs and to encourage states and others to adopt effective energy-efficiency policies. The Alliance recommends design elements that increase incentives to save energy.
