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Energy and Carbon Regulation Services
Energy systems require radical transformation to meet energy and climate change goals. In turn, this requires effective policy measures. Energy policies must change both the way we supply energy as well as how it is used across the spectrum of industrial, commercial and residential sectors. Regulatory systems have an important part to play, from incentivising industrial emissions abatement through carbon market measures, to developing energy audit programmes to help SMEs manage energy costs. Governments in developed, emerging and least-developed countries are all implementing approaches to meet their local needs and circumstances.
Successful regulation is about striking the right balance. Businesses can gain significant commercial advantage from improving energy efficiency, but poor regulation can increase administrative costs and create competitive distortions. If regulatory measures are to work well they must take account of opportunities for change, market conditions and be supported by effective stakeholder engagement and capacity building activities.
Ricardo-AEA is influential in helping governments develop, implement and evaluate policies in developed and developing countries. We supported the European Commission in establishing robust benchmarks for the flagship European Union (EU) Emissions Trading System and our support for a major Competent Authority enabled it to meet demanding timescales for assessing installation monitoring plans against the system’s new Monitoring and Reporting Regulations. Linking carbon markets will be vital for reducing competitive distortions for businesses, enabling them to achieve the most cost effective carbon abatement. Our past experience includes working with the European Commission to develop options for future carbon market linkages.
Our expertise in industrial energy efficiency technologies helped the United Kingdom Government develop and implement its sectoral negotiated agreement system, which has successfully delivered energy intensity improvements in the region of 20% over the last decade. In China, we are drawing on our international experience to help the World Bank to help design an energy saving certificate trading system for energy-intensive enterprises.
Ricardo-AEA has proven capabilities in supporting the development and implementation of energy and climate change policies and regulations. Our robust evidence-based approach helps clients understand abatement opportunities, set targets and crediting thresholds, define benchmarks, establish monitoring, reporting and verification regimes and build capacity within government departments and enterprises.