Energy firms do not respond to government climate change policy
A survey about the energy mix and responsiveness of 200 firms (so far) in the energy industry across 7 countries was conducted, and its results were presented in a side event last week. It studied how climate policy influenced energy companies and revealed a reactive approach from the industry.
Two types of energy companies were surveyed: power generators and technology providers. Power generators represented the companies that provide power to consumers. Technology providers were the companies that built the technology and power stations that generate power. Technology providers sell their output to power generators, who produce output for consumers.
How were firms affected by climate change government policy?
Climate policy from governments yielded different responses between the power generators and technology providers. Climate policy was found to have a negligible influence on most power generators, but a slightly negative influence on many also. For technology providers it was a clear positive, and it was growing long-term.
For power generators, the most impactful reasons were price and availability of energy, technology regulations, and the price and demand for electricity. Public opinion was somewhat important. Unfortunately, climate policy had a medium impact and the clean development mechanism (CDM) had a low impact.
For technology providers, the reasons were predominantly technology regulations, pricing (of installation and components) and public opinion, the same motives as the power generators.
Why is this?
Again, it is another example of resistance to change coming from business due to uncertainty of government policy and a global deal. At this stage, energy companies are appearing to respond to the climate change issue, and in fact are responding to basic branding and finance issues. Public opinion is becoming more critical of coal and oil, so these are being cleaned or replaced. Oil and gas are very expensive, so these are being reduced in the energy mix.
The energy industry is waiting for a clear direction on what is happening. It is taking a reactive approach. National governments are still learning and deciding upon the best policy for climate change, and until there is a conclusion to this, there will be low movement from energy companies.
By Darren Willman. Cross-posted from G-1Billion. Image credit: Ben Heine on Flickr
