Executive Summary: The Potential for Energy Savings Certificates (ESC) as a Major Tool in Greenhouse Gas Reduction Programs

In existing cap-and-trade schemes, there is a need for effective energy efficiency measurement and verification programs, along with a credible tracking system that guards against double counting and identifies measures that meet “additionality” criteria. Energy savings certificates (ESCs), it is argued, may be the necessary tool to make this link. ESCs may be particularly useful to attract investment in hard-to-reach sectors (such as rental buildings, and weatherization in low-income communities) as well as to attract investment in energy efficiency measures with long paybacks that have been slow to enter into the market.