Energy sales targets: An alternative to White Certificate schemes

White Certificate schemes are currently being implemented or proposed in a growing number of jurisdictions as a means to drive greater energy efficiency uptake. After briefly discussing some of the strengths and weaknesses of such schemes, this paper outlines a proposed alternative approach-the use of Energy Sales Targets. This approach essentially involves the imposition of a cap on the greenhouse gas (GHG) emissions associated with annual energy sales and, in its simplest version, requires no tradeable certificates or permits. The proposed approach creates a clear measurable link between how compliance is enforced (the retailers' targets) and the desired outcomes of the scheme (measurable reductions in GHG emissions). This drives physical additionality of the scheme, including negation of any rebound effect within the covered sectors. It also avoids the need to define the activities eligible to create certificates, and likewise, no deeming, auditing, monitoring or verification would be required by government beyond ensuring retailer compliance-significantly reducing administration costs. There does not appear to be a clear precedent for this type of scheme anywhere in the world, and so this paper should be seen as a preliminary scoping of options that are deserving of more in-depth assessment. (C) 2009 Elsevier Ltd. All rights reserved.