At the 2nd Annual Euromoney-REEEP Energy Efficiency Finance and Investment Forum today in London, utilities, investment managers and energy efficiency experts spoke about the importance of energy efficiency in lowering carbon emissions.

Englefield Capital stated the market in Europe for energy efficiency, using existing technologies, is more than EUR 100 billion (excluding transport). However the energy efficiency market remains fragmented, covering insulation, lighting, appliances, microgeneration and building fabric.

McKinsey spoke about “carbon productivity” (GDP/CO2) stating that current global productivity is $740 GDP/CO2, however in order to meet target carbon abatement paths the number should increase to $7,300. The potential exists to cut world oil demand by 64 million barrels/day through energy efficiency with more than $570 billion in energy infrastructure investment required every year between 2010 and 2030.

UK utility nPower stated that they are seeking financial partners to “package and roll-out” EE products for consumers. In 2008, they launched a new product called ENCOMPASS which is a web-based tool that measures & monitors energy consumption. “We are your energy advisor, not only supplier”.

British Gas is very interested in the clean energy space, having recently acquired a Solar Thermal installer (2nd largest in UK) and a building controls company. Utilities seem to be taking demand reduction seriously, even though initially saving energy appears counterintuitive for them.