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Victoria, Australia, shows how to develop energy efficiency

text-relevantenergy-efficiency-manVICTORIA ENGAGING WITH SMES ON RESOURCE EFFICIENCYflag-Australia https://www.theclimategroup.org/news/victoria-engaging-smes-resource-efficiency
New case study shows how the Australian state is supporting businesses on energy and materials efficiency  by Virginia Bagnoli 
24 January 2017 LONDON: The Climate Group has published a new case study, showing how the Australian state of Victoria is engaging small and medium sized enterprises (SMEs) to support them in improving energy and materials efficiency.

The new study demonstrates how SMEs can significantly reduce greenhouse gas (GHG) emissions while substantially improving energy efficiency by applying sustainable resource management and energy efficient production processes.

The state of Victoria identified these gaps and designed a new program tailored to SMEs to help them change inefficient practices, save money and increase productivity through energy and materials efficiency measures.

VICTORIA’S APPROACH

SMEs have historically been difficult to reach and engage with on environmental programs due to company priorities and a traditional focus on shorter-term business requirements. Victoria understood that the program needed to align with fundamental business needs and provide multiple points of entry to make participation accessible.

Victoria’s program is also being viewed as particularly innovative due to its multi-faceted approach to addressing the challenges of information, understanding the business case and accessing capital. This approach was delivered by assessing and understanding the barriers for SMEs, communicating effectively to channel the multiple benefits associated with energy and materials savings, and leveraging existing policies and programs.

The program components targeted businesses at different stages of ‘readiness’ – ranging from businesses at an exploratory stage wanting to determine how they could benefit from energy and/or materials efficiency, through to businesses ready to implement specific projects.

Eligible businesses could apply for a grant to partly cover the cost of a materials efficiency or energy efficiency assessment. A competitive, merit‑based application process provided three rounds of grants of up to A$50,000 to support businesses in managing the costs of implementing materials efficiency projects. Grants of up to A$25,000 were available for energy efficiency projects (with businesses contributing at least half the cost of the project).

MAKING THE BUSINESS CASE FOR ENERGY EFFICIENCY

The program ran from 2012 to 2016 and since its launch it has achieved tangible results: three rounds of grants over the past two years have provided A$3.8 million in funding to over 140 projects and these businesses are expected to save a combined A$4.74 million a year.

Recruiting businesses to the program was the greatest challenge encountered. According to the Victorian government, SMEs typically have little time to devote to what is not seen as a strategic priority for them. The key solution to this has been to convince businesses that energy and materials efficiency will help with business-critical issues and to provide financial support in order to create efficiency change and transform business performance.

Through the program, Victoria has implemented an effective method of approaching businesses and making the program attractive to them; a considerable challenge giving that materials efficiency in particular is a new concept to most businesses and service providers.

Using what was learned from the program, Victoria also recently embarked on a new initiative for SMEs, SV Business – Boosting Productivity, which will work with an additional 1,000 SMEs.

Download the Victoria case study here and find all the Policy Innovation program case studies here.

The Climate Group supports state and regional governments in developing effective climate change and clean energy policies through its Policy Innovation program. State and regional governments around the world are developing a new generation of innovative climate and energy policies and our Policy Innovation program showcases and explores these emerging models, working closely with governments for them to scale globally.

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January 25, 2017 - Posted by | AUSTRALIA, ENERGY

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