Legislation & regulation
Legislation and regulation provide the legal foundation for the implementation of most policies.
The first step for many countries is to pass legislation that sets forth the desired energy-related goals. This legislation will look a bit different from country to country, but will likely contain some similar components. These components include basic definitions and identification of roles and responsibilities. Most laws do not have enough detail to be implemented immediately.
To achieve the targets, regulations would have to be developed at the national level to tell the stakeholders how they have to contribute and maybe also what the penalty will be if they do not comply. Many countries have significant potential for both energy efficiency and renewable energy. In order to create a “pro-energy efficiency” and/or “pro-renewable energy” environment the government has to enhance energy efficiency and renewable energy through enabling instruments and interventions including economic and legislative means, establishing implementation instruments and setting targets.
For DEM advancing energy efficiency and renewable energy demands attention to the framework within which energy must grow and there are a number of factors that can be controlled to lead in the “right” direction. Our services covers all areas – typically using a holistic approach.
The holistic approach is often divided into four “frameworks”:
- The legal framework
- The financial framework
- The fiscal framework and
- The institutional framework
1. The legal framework
The legal framework constitutes mainly requirements, regulation and obligations. It is of main importance that the legal framework is transparent, and that requirements, regulation and obligations are enforced.
2. The financial framework
The financial framework aims to secure access to finance for energy efficiency and renewable energy projects.
3. The fiscal framework
The fiscal framework would consist of the fiscal incentives in accordance with an energy efficiency/renewable policy. This could take the form of e.g. green taxes/CO2 taxes, tax credits, institutional investor incentives, duty exemptions, VAT reductions etc.
4. The institutional framework
The institutional framework aims to ensure the necessary institutional support to implement the energy efficiency /renewable policies. This typically takes the form of supportive agencies and institutions (governmental and non-governmental), universities and other educational institutions, information management and raising awareness, policy making and planning, training and organizational development, mobilization of resources, etc.