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The project was designed to inform the early stages of the policy development process, with a particular objective to build the evidence base on incentive policies, and to explore which types of incentive schemes would most effectively address the barriers to the implementation of energy efficiency measures, within the industrial and commercial sectors.


Our research found that while most medium-sized and large businesses would respond positively to an incentive scheme designed to encourage energy efficiency, there is no silver bullet policy that will suit all businesses. Businesses in different circumstances prefer different types of incentive scheme. For example, an important factor in determining business preferences was whether or not they were capital constrained with regard to energy efficiency investments - for businesses that are capital constrained, incentive options that are structured to take away the need for upfront investment tend to be most popular.

James Rawlins, Associate Director at the Carbon Trust

Several other factors influenced the preferences expressed by companies, including the complexity of a scheme, and the sophistication and capability of the organisation to understand and manage it; the certainty of scheme payments, the capability of the organisation to estimate future savings and cope with variance from these estimates; and an organisation's trust in and willingness to work with a third party.

For more information and to download a copy of the final report see:

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