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The IEA has estimated that over the next four decades US$31 trillion will be required to promote energy efficiency in buildings. However, the opportunities to make such investments are often constrained, particularly in contexts of austerity. We consider the potential of revolving funds as an innovative financing mechanism that could reduce investment requirements and enhance investment impacts by recovering and reinvesting some of the savings generated by early investments. Such funds have been created in various contexts, but there has never been a formal academic evaluation of their potential to contribute to low carbon transitions. To address this, we propose a generic revolving fund model and apply it using data on the costs and benefits of domestic sector retrofit in the UK. We find that a revolving fund could reduce the costs of domestic sector retrofit in the UK by 26%, or £9 billion, whilst also making such a scheme cost-neutral, albeit with significant up-front investments that would only pay for themselves over an extended period of time. We conclude that revolving funds could enable countries with limited resources to invest more heavily and more effectively in low carbon development, even in contexts of austerity.

There is widespread interest in the ability of retrofit schemes to shape domestic energy use in order to tackle fuel poverty and reduce carbon emissions. Although much has been written on the topic, there have been few large-scale ex post evaluations of the actual impacts of such schemes. We address this by assessing domestic energy use before and after the Kirklees Warm Zone (KWZ) scheme, which by fitting insulation in 51,000 homes in the 2007–2010 period is one of the largest retrofit schemes completed in the UK to date. To do this, we develop and apply a new methodology that isolates the impacts of retrofit activity from broader background trends in energy use. The results suggest that the actual impacts of the KWZ scheme have been higher than predicted, and that the scale of any performance gaps or rebound effects have been lower than has often been assumed. They also suggest that impacts on energy use in lower income areas are consistent with predictions, but that impacts in middle and higher income areas are higher than predicted. These findings support the case for the wider and/or accelerated adoption of domestic retrofit schemes in other contexts.

Where costs or risks are higher, evidence is lacking or supporting institutions are less developed, policymakers can struggle to make the case for low-carbon investment. This is especially the case in developing world cities where decision-makers struggle to keep up with the pace and scale of change. Focusing on Palembang in Indonesia, this paper considers the economic case for proactive investment in low-carbon development. We find that a rapidly growing industrial city in a developing country can reduce emissions by 24.1% in 2025, relative to business as usual levels, with investments of USD405.6 million that would reduce energy expenditure in the city by USD436.8 million. Emissions from the regional grid could be reduced by 12.2% in 2025, relative to business as usual trends, with investments of USD2.9 billion that would generate annual savings of USD175 million. These estimates understate the savings from reduced expenditure on energy subsidies and energy infrastructure. The compelling economic case for mainstreaming climate mitigation in this developing country city suggests that the constraints on climate action can be political and institutional rather than economic. There is therefore a need for more effective energy governance to drive the transition to a low-carbon economy.

Reducing climate changing emissions associated with residential property continues to be a significant challenge. Five case studies of different domestic energy technology schemes in England highlight the influence of advisers and installers in householders’ decisions to adopt low carbon technologies. Many of these advisers and installers are micro-enterprises working in connected groups in particular geographic areas. Such micro-enterprises form a large part of the construction sector, but despite the number of enterprises and the potential impact of changes in the behaviour of the sole traders and small firms, there appears to be little policy that specifically targets this group. Data from these case studies is presented and organised into a typological framework, in order to illustrate the range of ways in which the impact of advisers and installers can be modified. Two of the six factors in the typological framework relate to the motivation of installers themselves and how their work is perceived by their clients. By examining these factors in particular, this paper makes a novel contribution to understanding the factors that influence the take up and use of domestic energy technologies, leading to the possibility of new policy options or interventions.

A significant proportion of the world's greenhouse gas emissions can be attributed, directly or indirectly, to corporate activities. An increasing number of companies have set targets and have adopted initiatives to reduce their greenhouse gas emissions, raising the question of what sorts of outcomes can realistically be expected from corporate action on climate change? This paper aims to shed some light on this issue through an analysis of the climate change performance of the UK supermarket sector. This sector is directly responsible for around 1% of UK greenhouse gas emissions, but it has been estimated that indirectly it may be responsible for up to 10% of emissions. In the period between 2000 and 2010, the major UK supermarkets transformed their approach to climate change. This paper examines the outcomes that resulted from these actions. It finds that there have been significant and steady improvements in energy efficiency, but that these efficiency gains are often outstripped by the impacts of business growth. For most companies, short of a radical redesign of their business activities, or an expansion of the scope of their energy management initiatives to include their indirect emissions, total greenhouse gas emissions will tend to increase over time.

This paper considers the influence of a range of factors within and around the firm on business decision making relating to the environment. Within the firm, it emphasises the importance of governance structures, corporate cultures and organisational capacities. Around the firm, it stresses the importance of the incentives, imperatives and informational pressures that emerge from governments, markets and civil society. It is argued that change is most likely where the various external pressures resonate with each other, and where they impact upon firms with receptive corporate cultures and adequate organisational capacities. It is also argued that these preconditions for change are often absent, which makes change more difficult or more expensive. It is further argued that even when these preconditions are in place, they are likely to engender only to incremental change. As prolonged periods of incremental change must eventually encounter diminishing returns, the key challenge for those seeking to promote significant changes in business behaviour is to put in place the full range of conditions needed to allow companies to make them. This can mean focusing not only on the operational but also on the strategic activities of businesses, and not only on individual businesses but also on the broader systems and networks within which they operate.