Mandatory moves to meet emission targets may work, but local authorities must use their leadership powers to win over citizens, says Philip Sellwood. The Government has signed up to a legally-binding pledge to cut its greenhouse gas emissions by 80% by 2050. But is a nudge going to be enough or will Government need to be more firm to reduce our impact on climate change? If we throw everything at our existing housing stock together with a programme of behavioural change combined with decarbonisation of the grid then we could achieve a 70% cut in household carbon emissions. However, this doesn't take into account technology advancements or zero-carbon new-build homes that could generate additional energy savings, so an 80% target is possible. Small-scale renewables could go a long way to helping achieve this reduction. Currently micro-generation is a niche market. We want to see Government set targets for micro-generation and put in place the right combination of policies to achieve these targets. People have been put off from purchasing micro-generation for a range of reasons, mainly up-front costs. Half of households identified an annual reduction in council tax after installation as a financial measure which would encourage them to purchase micro-generation technologies. Longer lasting incentives like feed-in tariffs could enable people to sell excess electricity back to the grid at a premium price. And if payments for energy generated by the micro-generation system were paid up front to the consumer this would allow them to use this money towards the capital cost of the technology – making it more affordable. Compulsion could also be a very effective way of delivering micro-generation uptake. For example, by mandating that old boilers are replaced with micro-generation heating technology or that solar thermal, wind or photo voltaic cells are to be made mandatory at time of roof repair, this would mean that around nine million micro-generation technologies could be installed in the UK by 2020. The barriers are not all down to regulatory reform though. Most homes will now get planning permission for the installation of micro-generation, but local authorities need to take a long-term view on the benefits. This is an example where intervention by central Government also needs action by local government if we are to truly join up action. Local decision-making can be far reaching – we only have to look to the Merton Rule to see this. Developers across England and Wales could soon be required to source at least 10% of any new building's energy from on-site or near-site renewable energy projects. Local authorities can also impact directly on sustainable transport by integrating new developments into their transport infrastructure, therefore reducing people's reliance on their cars. In the future, home owners should be required to make good any energy efficiency recommendations set out in the Energy Performance Certificate (EPC) either before the home is sold on or let out or within a fixed time period. We cannot rely entirely on voluntary actions. We recommend energy efficiency improvements should be brought in for all buildings undergoing major renovation. We know that reductions in stamp duty and council tax for homes that are more efficient will influence people's buying decisions. Local authorities can play a huge role by utilising fully the potential of the Housing Health and Safety Rating System that is used to require private landlords to improve standards, which in turn can lead to more energy efficient homes. And while we welcome the Government's decision to make smart meters mandatory – real time displays showing gas and electricity usage as it happens – we would urge them to quicken the pace at which this initiative is rolled out across the UK. Climate change cannot be tackled without intervention but at the same time we also need to focus on engaging citizens. If we don't then we could end up with homes with best boilers and micro-generation technology, but householders failing to know how to use the technology. Local authorities, through great leadership, hold the key to us all reducing our impact on climate change. Local authorities are uniquely placed to galvanise and co-ordinate local action. Our customers tell us that they do want to see leadership on environmental issues. And when the benefits of greening their lifestyles are explained to them – whether for financial or environmental reasons – they will act. Philip Sellwood is chief executive of the Energy Savings Trust