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Energy Efficiency

Volume 448: debated on Thursday 29 June 2006

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment he has made of the main barriers to the UK making more and better use of energy efficiency methods; and what steps his Department is taking with other Departments to overcome these barriers. (79684)

The Energy Efficiency Innovation Review, published jointly by Her Majesty's Treasury and DEFRA last December, assessed the barriers to the increased take-up of energy efficiency measures. These include high up-front investment costs, lack of access to capital, split incentives, other market failures, the hassle factor, lack of consumer information and mistrust of suppliers or installers. Further information can be found on the DEFRA website:

http://www.defra.gov.uk/environment/energy/review/.

This evidence has been used to inform the Review of the UK Climate Change programme, published in March this year, and the ongoing Energy Policy Review. For example, in the household sector, the Energy Efficiency Innovation Review identified consumer misapprehension of the costs and benefits of energy efficiency as a key barrier. The Government have subsequently announced a £20 million initiative to promote consumer uptake of energy efficiency measures, working with energy suppliers and local authorities.