The climate and energy policy framework is a key driver for the performance of the European economy. We need to get it right.
Addressing climate change poses challenges for policy makers. Key questions include, how best to meet multiple targets and objectives and how to balance the costs and benefits. Costs include, for example, meeting targets through low carbon energy production, investing in equipment to increase energy efficiency and providing information to change behaviour. Increasingly, governments are also concerned about whether there are costs in terms of national competitiveness. Benefits include those resulting from avoiding the adverse impacts of climate change on the economy, individuals and communities – many of which will be realised for many decades to come. Benefits may also arise where new markets or industries are created and there are opportunities for economic growth.
We work extensively with clients including power companies, regulators, policy makers and consumers worldwide. This provides us with deep-rooted experience in understanding all sides of the issues so that our advice is both pragmatic and based on the best evidence.
We regularly undertake cost-benefit analysis of alternative policy options – either to appraise them before they are implemented or to evaluate them later. We account for the uncertainties facing policy makers when looking to the future. Our work deals with the realities of delivering effective policy in an increasingly competitive and fiscally difficult environment. We also help clients shape and design policies that meet objectives efficiently and effectively. This requires us to use innovative thinking to generate creative and credible options.
Read more about our energy work.