8. Policy recommendations

• Clarify how to understand and work with energy poverty in continuation of the implementation of the energy efficiency directive, the electricity market directive and the regulation of the Social Climate Fund. A stronger and shared understanding of energy poverty at the national level in the Nordics strengthens national efforts, particularly in determining focal points for the implementation of the revised energy efficiency directive. This includes balancing affordability and other social considerations, energy efficiency, as well as energy security.
• Initiate national work to interpret and translate recently provided EU guidance in the Nordic context. Be aware of differences across national contexts that might generate a need for national targeting.

• Select a set of indicators to mirror the local context and its complexity. That will include data accessibility as well as barriers in terms of data access and rights that might hamper policy measures aimed at tackling energy poverty. Moreover, triangulation of indicators is necessary since one-dimensional indicators are generally flawed, and energy poverty is a multidimensional problem with many nuances. The defining indicators should be based on a bottom-up approach where in-depth data validate the relevance of indicators. Data from indicators should be used to develop effective and targeted measures to prevent and mitigate energy poverty.
• Indicators need to be supplemented by more in-depth data. While indicators can serve a purpose in terms of international comparison and assessment at an overall level, there is a need for more in-depth approaches to complement the overarching numbers and support targeting and reach of policy measures.
• Consider using and establishing national data to supplement or replace EU indicators. The Nordic countries gather detailed administrative data on individual and household level that potentially can be used to create more nuanced indicators and identification.

• Responsibility for the implementation of energy poverty should be clearly anchored in one governmental department, selected with respect to local challenges and ambitions. The anchoring supports the clarification of roles and responsibilities.
• Due to the multidimensional nature of energy poverty, there is a need to establish collaboration across different departments and combining areas of expertise is necessary. This approach aims to reach target groups and ensure a comprehensive, holistic understanding of the complexities and multidimensionality of the problem.
• Nordic collaboration can help further work on energy poverty in each of the Nordic countries. Although the countries differ somewhat, they face similar challenges regarding their work with energy poverty and can benefit from mutual knowledge-sharing. A shared Nordic perspective, allowing for local nuances, coupled with a cross-comparative methodology and a dedicated platform for knowledge exchange in the Nordics support the implementation.

• Establish more knowledge on how different measures work and what impact they have on different target groups. The effectiveness of mitigation measures varies among different target groups, highlighting the need for more tailored solutions. Renovation can benefit low-quality housing, especially for certain groups. However, households with low energy consumption may find monetary subsidies more helpful than renovation measures.
• Establish an understanding of whether the 'full package' of applied measures adequately reflects and addresses challenges and needs in your country in relation to energy poverty as well as the broader social efforts. There is a need, among other considerations, to distinguish between short-term emergency measures and initiatives aimed at addressing the root causes of energy poverty

  U 2023 COM recommendation (C/2023/4080). https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:L_202302407 (Addressing root causes, Section II).

  . While emergency policy measures have served as temporary stabilisers in a time of energy crisis, the focus would benefit from shifting towards policies aimed at tackling energy poverty while being aligned with medium- and long-term climate and energy goals. Given the recent years’ energy crisis, this might require policy evaluation and increased focus on mistargeting and adverse incentive structures.
• Share lessons learned across the Nordics to build more knowledge. This study has highlighted a need for more knowledge about how energy poverty can be interpreted, its implications for estimating prevalence, and consequently, the identification of the most effective mitigation measures for specific target groups. Various actors from different sectors across the Nordics emphasize the need for shared knowledge to support the national implementation.