The EEO Program is likely to close, but can you afford to take your eye off the prize?

The EEO Program is likely to close, but can you afford to take your eye off the prize?
05 Jun 2014Archived News Climate Change Matters

Energy costs as a proportion of operating costs among EEO participants varies significantly, and continuing efforts to reduce energy costs are likely to be concentrated on those businesses with greatest energy intensity. However, all businesses with significant energy costs will continue to seek to improve the way they manage energy as a source of competitive advantage.  

Furthermore, energy improvement as a mitigating measure against rising energy costs should be component of any large business’ risk management strategy.


Apart from using energy efficiency as a way of controlling costs and improving productivity, a significant proportion of program participants use the outcomes of EEO as input into CDP reports, sustainability and annual reports, DJSI reporting, and internal and external energy and GHG improvement targets.  Without EEO, how will your business meet these objectives?


The statement issued by the government announcing the end of EEO also expressed interest in considering options to promote energy productivity as part of the Energy White Paper consultation process.  Improving energy productivity takes energy efficiency measures a significant step further.  Energy productivity contributes to a business’ overall productivity and in turn, competitiveness.  The realities of continued upward pressure on energy costs make investments in energy management projects commercially attractive.  They also mitigate future risks, when considered in the broader context of Australia’s current and future commitments to reduce greenhouse emissions.


Energy White Paper process and the role of energy efficiency / productivity
Enhanced energy productivity is vital to businesses seeking to improve and remain competitive, and large energy users have much to gain by a continued focus on improving the way energy is used.


Energetics encourages EEO participants to contribute to the Energy White Paper process (Green Paper due to be released in June 2014, http://ewp.industry.gov.au/), which specifically mentions energy productivity as a key policy objective.


Energetics can assist
Energetics is well positioned to assist EEO participants to take the next steps into energy efficiency and broader energy productivity.  We are currently assisting clients with reviews of their achievements under the EEO program, the risks going forward, and evaluating realistic options to ensure that the momentum built up in recent years is not wasted, but continue to deliver in a way that is specifically appropriate to the client’s business.


From a national policy perspective, we expect that energy efficiency and energy productivity, as proven, low cost abatement options, will feature in any future energy policy response.  Business has an opportunity to make a submission to the Energy White Paper process to contribute insights into the value of energy efficiency and energy productivity to your business and sector.


Energetics can help you demonstrate the value of existing energy efficiency projects, sure up a business case for new opportunities including securing highly advantageous financing arrangements, and assist with cost effective project implementation.  
 

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