Is energy efficiency the forgotten key to successful energy policy? Investigating the Swedish case

Abstract: Sweden aims to become one of the first fossil-free welfare countries in the world. In 2009, specific energy and climate policy targets were announced for 2020, which exceed the ambition of respective EU targets in some areas. The overarching objective of the thesis is to understand the role of energy efficiency in Swedish energy and climate policy frameworks, and identify the gaps that need to be addressed. In this context, energy efficiency is recognized as a challenge to address. Yet, there are reasons to believe that it is not being pursued with the same dedication as other energy and climate-related targets.This hypothesis is tested using Mixed Methods research, with cases on different sectors of the Swedish economy, namely energy intensive industry and public bus transport, as well as comparisons with energy efficiency within the EU-28. With the help of abductive reasoning, the observations are inferred to an explanation, and common themes for Swedish energy efficiency policies emerge.The evidence indicates that energy efficiency has received lower priority than other energy and climate policies. This is demonstrated by the conflict between energy efficiency, emission reduction and renewable energy targets, for example in the case of public transport. There is generally a mismatch between targets and the instruments in place. Thus more attention should be given to energy efficiency and its potential benefits for the Swedish energy system.Opportunities for energy efficiency improvements are not being fully realized, but new policy initiatives could provide the necessary support to harness the potential. In-depth evaluation of new policy instruments should be integrated in the policy-making process, in order to provide a clear picture of costs versus benefits. An example is given with a Cost-Benefit Analysis for energy efficiency obligations targeting the Swedish energy intensive industry.Simplicity and transparency in the introduction and monitoring of new instruments need to be sought for. Energy efficiency should be given first priority in relation to other energy and climate targets. The basis for future policies should be grounded now in order for energy efficiency to become the key for successful Swedish energy policy.