Carbone 4 Responds to the Public Consultation on the Fourth Phase of Energy Savings Certificates

Carbone 4 conducted a study with EDF on Energy Savings Certificates (CEE) and the Energy Transition Tax Credit (CITE), and publishes his contribution at the public consultation  from the Ministry of the Environment, Energy, and the Sea (MEEM) on the fourth session of the Economic and Social Council.

The CEE and CITE are programs designed to subsidize energy-saving projects in the residential, commercial, and industrial sectors, among others, in the case of the CEE, and exclusively in the residential sector in the case of the CITE. Both mechanisms apply to the same procedures in residential settings. For example, they can be used to subsidize insulation projects, the installation of high-efficiency boilers, or heat pumps.

The MEEM’s public consultation focuses on the fourth phase of the CEE mechanism, with the third phase ending in late 2017. This fourth period would run from 2018 to 2020 and would be subject to a new cap on obligations, raising the level to 1,200 TWh cumac (cumulative, discounted kWh) with an additional 400 TWh cumac allocated to households experiencing energy poverty. This would represent an increase compared to the third period, during which the cap is 700 TWh cumac and 150 TWh cumac for households experiencing energy poverty.

The objective of the study by Carbone 4 and EDF is to assess the economic incentives and changes in greenhouse gas emissions associated with the CEE and CITE programs. The study examines several widely used measures and analyzes the level of financial support in the overall cost-benefit analysis of these measures, as well as the difference in greenhouse gas emissions between the pre- and post-measure scenarios.

In particular, the study shows that the CEE represents, in all cases, a marginal contribution in terms of cost-effectiveness, unlike the CITE, which is a direct and significant subsidy. Nevertheless, these programs lead to perverse effects in terms of greenhouse gas emissions in the common scenario where high-efficiency boilers replace electric heating systems. Conversely, heat pumps—which can reduce emissions by at least 60%—do not receive sufficient support to be cost-effective.

Carbone 4 therefore recommends revising the CEE and CITE programs to reduce subsidies for actions that increase emissions and to increase subsidies for actions that reduce emissions.

For more information, please refer to Our Response to the Public Consultation .

Contact us: contact@carbone4.com

home page photo thumbnail © by-studio - Fotolia.com