US businesses demand binding energy-saving targets

The cost savings to the US economy that could be attained through energy-efficiency initiatives are even higher than previously thought, according to new research released last week by the American Council for an Energy Efficient Economy (ACEEE).

The study calculated that annual energy bill savings for businesses and consumers could reach $168.6bn (£116.5bn), a figure 16 per cent greater than the ACEEE's previous estimate.

The updated figures were released to coincide with the launch of a new coalition of NGOs and businesses, including Allianz, Dow Chemical, Intel and Sun Microsystems, under the banner of the Campaign for an Energy-Efficient America.

The group said it would lobby legislators to enact a federal energy-efficiency target, which would help drive wider adoption of energy-efficiency measures.

Reid Detchon, executive director of lobby group the Energy Future Coalition, said the coalition demonstrated that "the idea of a national energy-efficiency standard draws support from a wide range of business and environmental groups", adding that such a target would "save money for consumers, create long-term jobs that cannot be outsourced, and reduce greenhouse gas emissions".

According to the ACEEE report, a federal energy-efficiency resource standard requiring utilities to reduce electricity demand by 15 per cent and natural gas demand by 10 per cent by 2020 would serve to create 222,000 permanent jobs and cut US carbon emissions by 262m tonnes.

The group said that 19 states had already adopted similar standards, but argued that a federal target was needed to maximise investment in energy efficiency.

It added that it would throw its weight behind the new Save American Energy Act, which was introduced by Representative Edward Markey and Senator Charles E Schumer and includes proposals for a federal energy-efficiency standard.

Mindy S Lubber, president of sustainable investor group Ceres, a member of the new campaign, urged legislators to pass the legislation, arguing that it would receive support from businesses.

"Energy efficiency is the veritable low-hanging fruit for businesses that want to fight climate change and reduce their monthly energy bills," she said. "Leading businesses are calling on Congress to pass strong energy-saving policies that will spur innovation, improve company bottom lines and put Americans back to work building a clean-energy economy."