Empower investors and consumers with information on sustainable electricity

 
Policy makers should provide investors with information on the environmental sustainability of their investments, using taxonomies for instance. The European Commission has proposed a voluntary-based taxonomy in its 2018 Action Plan on Financing Sustainable Growth. Once implemented, this proposal could provide more visibility to decarbonised electricity generation in financial-market portfolios. This, in turn, can influence corporate and investor decision making, and support the achievement of the Paris Agreement goals.

While minimum energy performance standards are the most effective means to improving energy efficiency, broad and frequent feedback to consumers on energy usage can also reduce consumption, and spur investment in energy-efficient practices and products, as well as the uptake of renewable energy sources. These can include clearer energy efficiency frameworks, such as clear and visual energy efficiency labels, green defaults and communications campaigning for renewable energy uptake, as well as direct feedback to consumers, through clearer energy bills for example. Real-time information on the carbon footprint of electricity consumption can steer consumers towards less polluting energy mixes.

EXPLORE FURTHER

Article: Cool Generation, OECD Observer (2018).

Article: Tackling Environmental Problems with the Help of Behavioural Insights, OECD (2017).