Climate Change Mitigation through Energy Efficiency Laws: from International Obligations to Domestic Regulation

Energy efficiency is one of the most effective and affordable policy mechanisms to address climate change, stimulate economic growth and improve energy security. Energy efficiency laws are a low-cost approach to climate change mitigation and a 'no regrets' measure. The development of energy efficiency laws and domestic sustainable energy policy has been positively influenced by principles of international environmental law. But international and regional treaties fail to establish uniform energy efficiency obligations and are drafted in non-binding hortatory language. Australian energy production - the case study of this article - is primarily based on emissions-intensive fossil fuels. Considerable potential exists to employ proven energy efficiency technologies to reduce energy demand. Success will require constructive federal-state cooperation and coordination, including harmonisation and implementation of legislation. Sectoral improvements can be achieved in high-emissions industry, appliance performance standards and labelling and buildings. Although still in its infancy, Australian energy efficiency regulation has delivered preliminary economic and environmental benefits. Lessons can be learnt from the European and US experiences on how to remove barriers to adoption and unlock the enormous greenhouse gas (GHG) emissions reduction potential of energy efficiency.