9. Potential Directions and Next Steps

Perhaps more than ever, it is clear that addressing the problems of energy scarcity, pollution and climate change requires a basic re-orientation of the energy economy that will take decades, and in which EE will play a key role. The EEWG plans to provide guidance to such a plan along three key policy tracks: (1) broad price signals that raise consumer costs of energy; (2) institutional reforms such as changes in regulated utility mandates and in principles of municipal planning and taxation; and (3) specific measures that address barriers particular to certain end-uses or technologies.

The EEWG will prepare and implement a research program to support its deliberations in the next phase of its work. The research and discussions will culminate in a final paper with recommendations.

It is expected that the EEWG will emphasize regulation and energy pricing. Information programs, such as appliance labelling, are low-cost and desirable, but are not likely to 'move mountains' on their own. Incentives will be necessary in many cases, but there is not enough public money to move the full capital stock in the required directions.

By way of illustration, the types of measures that the EEWG may consider include:

• A broad, long term and stable signal (e.g. fuel or GHG taxes or emission caps and permits)
• Mandatory efficiency standards for all classes of road vehicles
• More stringent energy standards in new construction
• Efficient pricing of electricity, which can be accomplished consistent with heritage pricing policy through the use of two-part tariffs
• Training programs for installation and maintenance of EE equipment, coincident with regulations or incentives
• Direction to utility regulators to make utility owners favour DSM over supply whenever the former is less costly; 'radical' forms of regulation, such as revenue per customer
• Tying ecological performance, including energy consumption, to municipal development permitting, including incentives such as density bonuses for superior performance
• Parking supply restrictions and road pricing - these have been identified as two of the most effective TDM measures.