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Energy demand policymaking attention in the context of a just transition to net zero: results of a UK survey

Panel: 2. Policy innovations to ensure, scale and sustain action

This is a peer-reviewed paper.

Authors:
Colin Nolden, Centre for Research into Energy Demand Solutions, University of Oxford, United Kingdom
Nick Eyre, ECI-CREDS, University of Oxford - Environmental Change Institute, United Kingdom
Tina Fawcett, Centre for Research into Energy Demand Solutions, University of Oxford, United Kingdom

Abstract

Energy demand reductions, which come from both measures to improve energy efficiency and changes in the underlying demand for services, have contributed more to carbon emissions reduction than the combined effects of deploying low-carbon generation technology. Yet energy demand appears to receive less policymaking attention than energy supply, even where demand side change could secure similar policy objectives more cost effectively.

This hypothesis is tested through a survey of UK energy experts and stakeholders (n=71). Findings suggest that energy experts and stakeholders currently hold an unfavourable view of energy policy outcomes in the UK. Target setting, technologies and market-based instruments receive most policymaking attention while energy demand solutions, changing practices, regulation and finance do not receive the attention they deserve.

To achieve a just transition to net zero, respondents favour more radical innovations. These include a modal shift towards active travel and demand-side response, which are expected to diffuse before 2030, changing work practices, which are expected to diffuse widely between now and 2025, and circular material and product economies, which might diffuse from 2030 onwards in unsubsidised markets. Such markets for high-standard whole-house retrofits, which respondents deem of paramount importance for a just transition to net zero, are also expected emerge around 2030 although nearly a sixth of the respondents suggest this will only happen after 2050, if ever.

Diffusion and emergence of unsubsidised markets or such radical innovations hinges upon fundamental changes in how we approach energy. While shifting the focus to energy demand solutions and policy support for existing technologies are within the remit of energy policy, regulatory and institutional change for more human-focused energy system operation, and, most importantly, education and public awareness, are not. These require systemic transformation of policy and practice to achieve a just transition to net zero.

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