A new report has identified that the USA could reduce its energy consumption by 23% by 2020 through energy efficiency.

The report has been prepared by McKinsey and Company, who are well known for their studies on the economics of cutting greenhouse gas emissions.

McKinsey however says that this sort of saving is not easily achieved. Three types of barriers to the uptake of energy efficiency are identified in their report – structural, behavioural and availability. They say that these barriers need to be overcome to realise the full potential of energy efficiency across the economy.

Structural barriers are those that prevent an end user of energy from saving energy. For example a tenant typically has no control over the type of heating and cooling system in the building.

Behavioural barriers are those where ignorance or unwillingness to act mean energy efficient solutions aren’t implemented. An example that we see quite often in commercial buildings is ignorance about the time the air conditioning starts in the morning. Often it will be starting two hours or more before the building is occupied in the morning – which is wasteful if it only takes half an hour to get the building to a comfortable temperature.

Availability barriers are those where the user wants to reduce energy, but can’t access the solution or technology, often for cash-flow or cost reasons. For example, a business with tight cash flow that knows its HVAC system is a clunker, but doesn’t have the cash for an upgrade.

The report proposes various solutions to these barriers, mostly showing what government could do. The prescriptions appear valid for any government, not just the US. If you are in government, or have some influence in government circles, this report is worthwhile looking at.

Click here for the report.

Whilst these sorts of reports can be useful, they come with the implicit message “Think climate change – think government.” Don’t fall into the trap of thinking that just because another report is recommending the government do more, that it’s the sole responsibility of government to cut greenhouse gas emissions. There is a lot you can do yourself, and with focus and creativity these barriers can be overcome. Your organisation could probably cost effectively achieve a 23% saving from energy efficiency within a couple of years if you make this a priority. And the greater the number of individuals and organisations who make this a priority, the greater the impact.

Go to the department of climate change’s website and you’ll see the slogan “think climate, think change”.

Here in Melbourne the department of climate change’s slogan could be rephrased as “Think climate - watch change”.

In the 1980s vehicle number plates here in Melbourne proudly bore the slogan “Victoria – the garden state”. Fast forward twenty years to 2009 and Melbourne is now the driest capital city in Australia. Six months ago we had our worst ever bush fires. The newspapers this week have been saying that fire danger is going to be even worse next summer. 

This is precisely what most governments have been doing for a long time now – thinking climate – watching change - and not doing enough. The Australian Government ratified the United Nations Framework Convention on Climate Change, along with most of the rest of the world, back in 1992 (yes, SEVENTEEN years ago!).  Back in 1992 this is what Australia and many other countries agreed to:

“Where there are threats of serious or irreversible damage,lack of full scientific certainty should not be used as a reason for postponing such measures [to anticipate, prevent or minimise the causes of climate change]”, UNFCCC, 1992

“Think climate, think change” is a start – yes we need to think about this issue – but we need to go beyond thinking to action – all of us, not just the government. I much prefer the message developed by Darebin City Council – “think climate, make change”. Now.

You can reduce your own carbon footprint significantly if you want to. You can encourage those you know to do the same. And if you are an entrepreneur – think up solutions that cut carbon emissions then make them a reality, like Shai Agassi at Better Place. “I’m an imagineer. I imagine the future and engineer towards it.”

Reflecting on my interviews with various leaders in the energy efficiency space there are five things you must have to successfully reduce energy use and carbon emissions.

First you need leadership commitment.

Second you need a measurement and monitoring system. Whether you are a school (listen to Hannah Lewis, Westernport Secondary College, which has halved its energy use in the last four years) or a major corporation such as Wesfarmers, you must be able to track your progress.

Third you need more than one person active and driving the program. Witness Linfox, where a few programmers voluntarily took on the extra project of building a carbon tracking tool.

Fourth you need a well informed plan as to what you need to do. An energy audit by experienced energy efficiency engineers will provide this.

Fifth, you need investment. Money is needed to get the savings. The money could be spent on people (eg the driver training undertaken by LinfoX) or technology (eg lighting upgrades at Darebin City Council and Newcastle City Council, or the new paint plant at Toyota). 

Do this and with time you’ll have a self-funding system that will continue to reduce your energy use and carbon footprint.

Once you start listening for climate positive stories or examples you’ll find lots to be inspired by. I’ve heard quite a few of them over the last 18 days. Here are seven quick examples of organisations that have saved money and greenhouse gas by cutting their use of energy.

1. University of New South Wales mail centre – Fuji Xerox helped them achieve a 23% reduction with new copiers and printers / consolidation of machines.
2. Airbus – the new A380 uses 40% less fuel per passenger km than aircraft of 25 years ago.
3. Google server rooms – use less than half the energy of a typical server room of the same capacity.
4. Dell computers saved over USD$1 million by improving the computer switch off practices of its staff.
5. The leading Sustainability Street (a program run by Vox Bandicoot) – cut greenhouse emissions by 49%.
6. Gaden’s Lawyers cut energy consumption by 20% through behaviour change. No capital cost.
7. Logistics company Linfox is aiming to cut its emissions by 15% by 2010. A driver training program is already making a significant contribution to the achievement of this target.

Now that’s climate positive! How much could you save?

If you know much about climate change you’ll know that cows and sheep produce a lot of greenhouse gas. In fact a cow can produce around 200 litres of methane a day, and methane has global warming potential 23 times greater than carbon dioxide. To put that into context thats 1.2 tonnes of greenhouse gas a year per cow, a bit over one quarter of the greenhouse gas produced by a car over a year. I once did an audit of a large business that grazed cattle basically to keep grass under control (it was by no means their core business), and the cattle accounted for 10% of their carbon emissions. Needless to say I recommended they switch to grazing kangaroos, which don’t produce methane.

As reported by MX The town of Ghent in Belgium has now declared Thursday a vegetarian day to help reduce carbon emissions. All government departments and schools are banning the consumption of meat on Thursdays.

Now this may seem radical to some, but I believe this is a fantastic “climate positive” initiative. In fact its something we may start in our office – a vegetarian Thursday. Its easy to do, it will save you money, and its good for the environment, and if you eat a lot of meat its good for your health too. A triple win!

And if you do enjoy meat the other days of the week consider kangaroo. Its lean. Its inexpensive. You can buy it in the supermarket, and it tastes delicious. YOu can buy it as a roast, plain, marinated and you can even get kangaroo sausages. My favourite is roast skippy.

Its been a while since our last blog post. Which of course means we have been busy helping our customers save lots of carbon!

Its always tremendously satisfying to see customers act on our advice and thus cut their energy costs and carbon emissions. We recently helped one of our oldest customers identify savings in a building they have recently occupied, before I knew it our advice had been acted on and the next bill that comes in will be lower. As a consultant its pretty hard to beat the sense of fulfilment that comes from results such as this.

Over the last couple of years its been interesting to observe that the propensity for action is increasing. More of our customers are more willing to invest to achieve carbon savings. I think that there are a couple of  reasons for this.

Firstly, the obvious reason is that there is now much more popular support for efforts to reduce carbon emissions than there were three years ago. This has also transformed the mandate of many of the managers we deal with, to move from planning to action. Which is fantastic.

However another reason is also the experience of many of our customers. They have become “true believers” in energy efficiency because they have seen the results for themselves in the past. Two or three years ago they might have felt they were going out on a bit of a limb to put money into energy efficiency. Could our advice be trusted? But they did. And, surprise surprise, their energy consumption dropped. They saved money and carbon. Now they are much more willing to invest.

If you still haven’t seen the results of investing in energy efficiency yourself, do a small trial. Firstly, establish your baseline energy consumption. Pick a small building – for example your home – and go through the bills to establish your annual cost and carbon emissions (www.fossilfueldiet.com.au has a calculator which will help you do this). Then do some things to reduce your electricity use. Change any incandescent bulbs to compact fluorescent. If you have a beer fridge, used only occassionally, turn it off, and only turn on when needed. Rearrange your power boards so its easy to turn off stand by loads. Actively start thinking about light switches and turning off lights in empty rooms. If you can see that bad switch off habits in the household aren’t changing as quickly as you would like, try to do some things that “lock in” energy savings. For example, if your electric hot water unit is set to 70 degrees, lower this to 60 degrees, and start using timers to turn things off automatically.

You’ll learn a lot, and will see savings in your bills (remember to compare with the same time last year, as usage is seasonal). You can then apply these lessons at work to get much larger savings.

Become a “true believer” in energy efficiency and be a person of action. Simple, but something that can have a big impact when it comes to reducing carbon emissions.