Business

Energy efficiency is the most readily available and least-cost solution to global warming in the near-term. A recent study by McKinsey & Company found that increased efficiency in buildings, industry, transportation, and energy production could meet almost all increased demand for energy services in the United States while preventing more than 1.5 billion tons of carbon dioxide emissions each year by 2030—with an annual net savings of over $50 billion. Importantly, McKinsey states that achieving these carbon savings will require “a portfolio of strong, coordinated policies.”
Climate cap-and-trade or carbon tax legislation can spur unprecedented levels of energy efficiency, especially in hard-to-reach sectors of the economy. But market barriers that prevent cost-effective efficiency measures today will make it hard to achieve the needed energy savings solely through carbon prices. In addition, a poorly designed cap-and-trade system may provide little price signal to energy users. Tapping the vast available reserves of cost-effective energy efficiency will require careful design of the cap-and-trade or tax system, enactment of complementary efficiency policies, and use of some of the revenues for energy-efficiency programs.

The President signed into law the most sweeping energy efficiency legislation in at least three decades on December 19, 2007. H.R. 6, The Energy Independence and Security Act of 2007, is projected to save American consumers and businesses more than $400 billion in avoided energy costs by 2030, and will reduce energy consumption by 7% and greenhouse gas emissions by 9% from the forecast for 2030, according to the American Council for an Energy Efficient Economy.
 

On December 19, 2007, President Bush signed into law the Energy Independence and Security Act of 2007, the most sweeping energy efficiency legislation in at least three decades.