Beyond the Buzzwords: Electrification Isn’t Energy Efficiency
Energy efficiency doesn’t require electrification – and policymakers must avoid falsely conflating the two or risk harming efforts to affordably reduce emissions. “Beyond the Buzzwords: Unpacking Energy Efficiency, Electrification, and Decarbonization,” a new policy whitepaper released by the American Gas Association, seeks to disentangle the roles of energy efficiency, electrification and decarbonization in pursuing climate goals while providing critical information for policymakers seeking to make sound policy that balances environmental, economic, and practical considerations.
“Policymakers have a responsibility to make informed choices on policies that will impact the lives of tens of millions of Americans and the integrity of our entire energy system,” said AGA Managing Director, Policy and Strategy Ashley Duckman. “This paper is our effort to address misinformation and clarify key concepts that are guiding the future of our entire energy system.”
Beyond the Buzzwords emphasizes the importance of recognizing that decarbonization doesn’t mean electrification, and that energy efficiency enabled by natural gas must be recognized as a decarbonization strategy in its own right. Policymakers and stakeholders who ignore these distinctions could inadvertently adopt initiatives that raise emissions, overburden consumers, or overlook more effective and affordable solutions.
Energy efficiency efforts by natural gas utilities have been a centerpiece of emissions reductions in the American energy system. These initiatives have resulted in 70% lower emissions from the natural gas distribution system since 1990, while natural gas utility home energy efficiency programs have enabled a steep and continuing reduction in home greenhouse gas emissions. As we work to build on this record of success, failing to distinguish energy efficiency from electrification can lead to significant unintended consequences. Shifting from a direct-use natural gas appliance to an electric system may increase total energy consumption and emissions in areas where electricity generation remains largely dependent on fossil fuels while raising costs to consumers and harming system reliability.
Key Findings and Recommendations for Policymakers
- Adopt a Holistic Approach: Avoid one-size-fits-all mandates. Use FFC metrics to measure the true environmental impact of different energy sources and technologies.
- Promote Energy Efficiency as a Standalone Objective: Expand energy efficiency programs with incentives that lower overall energy use and consumer costs.
- Use Full-Fuel-Cycle Measures: Prioritize FFC calculations to capture upstream and transmission-related emissions, ensuring policies address total environmental impacts.
- Leverage Natural Gas’s Role: Recognize natural gas’s capacity for high efficiency and emissions reductions, especially for space and water heating in colder climates or regions with fossil-fuel-intensive grids.
- Support Integrated Energy Strategies: Embrace the combined potential of renewable energy, natural gas, and advanced technologies, rather than singularly focusing on electrification.
- Institute Robust Regulatory Frameworks: Establish clear, measurable targets that incorporate FFC data reporting for transparent and accountable progress.
- Educate and Engage Stakeholders: Encourage informed decision-making and maintain consumer choice by clarifying the distinctions between energy efficiency, electrification, and decarbonization.
The report recognizes that the optimal path toward reducing greenhouse gas emissions requires a pragmatic blend of energy sources and technologies. Policymakers are encouraged to recognize the synergy between direct-use natural gas, renewables, and efficiency measures that can jointly reduce emissions while maintaining reliability and affordability for households and businesses alike.
For more information or to read “Beyond the Buzzwords: Unpacking Energy Efficiency, Electrification, and Decarbonization,” click here.