Policies applicable for local energy management
Not all political instruments are available for local policy to the whole extent. Some are reserved for the superior political levels.
In particular, cities have less legislative functions than national or provincial levels; on the other hand enforcement of laws and regulations will be executed on the local level in many respects. Local energy planning is thusfore challenged to use the existing elbowroom as appropriate and to the wanted extent. Many policy instruments have the potential to attract investments, which can be stimulated by the local policy.
Fiscal measures. In OECD countries about two-thirds of fiscal measures concern subsidies (grants, soft loans, guranted minimum prices) to support specific investments (eg. to encourage renewable energies or other environmentally benign technologies). The emphasis of cities should be laid on fostering the development of commercially available technologies and fuels with low emissions but are not yet competitive with conventional technologies and fuels. The instrument taxes is restricted for cities usally. But cities can encourage local population and business to fall back on these opportunities provided by the state.
Tradeable permits. Cities may participate in these typs of market instruments. By now emission trading systems are not yet elaborated very well. Nevertheless, cities may encourage local industry to become addressats of such trading activities within the framework of the Clean Development Mechanism (CDM) and make appropriate preparations. Industry will need some professional advisory support to develop eligible projects.
Regulatory instruments. Local administrations are usally responsible for the enforcement of superior regulations in their area. Cities should seek to use this power to navigate concrete local projects into the appropriate directions recommended through the local situation. Experiences from European countries show, that local administrations could influence the local energy use to a larger extent as the do by now, if they would use their authority better in the fields of spatial planning, licensing of industrial installations, permitting of building construction and careful tendering and procurement acivities.
Voluntary agreements. Every city is free to complete its mandatory policy with voluntary approaches. Most of such agreements are negotiated with industry to reduce emissions. The motivation of industry to make such agreements is the higher the more econmic benefits can be drawn out. Compared with most mandatory standards voluntary agreements have more often than not the advantage not to freeze technological standards in kind of an abstract state of the art but keep innovation running.
Research and development. Cities may set up own research programmes, perform demonstration projects or should encourage local institutions to participate in provincial or national or even international programmes. In the minimum they should care for sufficient information about such features. The extent of a city's engagement will depend on the availability of own resources (financial, personnel).
Information, consulting and advice. Cities should have an eye on the quality and extent of information available for their inhabitants and business. Usally it is recommended to organise additional or new services in this respect. Experiences from Europe show, that the later is necessary and useful to stimulate more innovative energy projects and to bring the parties together.