May 2006

Energy Efficiency and Renewable Energy

Increased energy efficiency is an important step towards sustainable energy supply and consumption. Improvements in energy efficiency will reduce the use of other energy sources, encouraging restructuring of production processes. This is particularly important when seen in the context of poverty alleviation and mitigation since energy efficiency allows better management of resources.

The lack of market incentives and financing for energy efficiency are significant obstacles. The lack of funding from financial institutions to back the huge capital cost investment that solar and wind energy require has limited the development of renewable energy. Although both wind and solar energy are growing, they currently only provide a fraction of the demand for energy. The growth of the market has depended on market innovation in the industry and demand created from community organizing and shifts in public attitudes towards renewable energy.

The United States has recognized its dependency on oil as an issue of national security and inherently unsustainable. In response, youth in the United States are forcing their colleges and universities to make significant investments in improving energy efficiency of their buildings and facilities and to increase the use of renewable energy technologies.

College and universities have been signing on to Climate Campus Challenge, a national campaign that commits college and university campuses to upgrade their energy efficiency codes, use clean and renewable energy, increase use of transportation alternatives, increase environmentally friendly purchases, and set the example in their communities. The Challenge which is sponsored by Energy Action – a coalition of 30 organizations working for a cleaner climate – provides resources, targets, and empowerment to student activists and leaders to achieve progress towards a sustainable energy future. The example set by college and universities has proven to be a replicable profitable investment supporting the market for renewable energy.

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