Buildings and Climate Change - Summary for Decision-Makers Sustainable Buildings & Climate Initiative
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Sustainable Buildings
& Climate Initiative
Buildings and
Climate Change
Summary for Decision-Makers
r o g r a m m e
P
n v i r o n m e n t
E
a t i o n s
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Also in this Series
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Greenhouse Gas Emission Baselines and Reduction Potentials from
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The South Africa report concludes that the operation of non-residential and residential
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and anticipated government investment programmes, it is likely that investment in
residential and non-residential buildings will grow on average at around 2% per year
between 2008 and 2050 which would result in the total building stock doubling by 2050.
If greenhouse gas emissions were unchecked, this would result in a two-fold increase
in emissions. Estimates using current technologies suggest that energy efficiencies of
around 40% to 50% could be obtained in new buildings in the commercial sector and
around 30% to 40% in the residential sector.
Greenhouse Gas Emission Baselines and Reduction Potentials from
Buildings in Mexico: A Discussion Document
This report is the first comprehensive description of the factors that determine the
present and future impacts of residential and commercial buildings in México on
climate change. The findings are based on a quantification and analysis of built space
and energy use in Mexico’s residential and commercial sectors. It also involved the
development of a model to estimate greenhouse gas emissions of those sectors
based on the available information.
Downloadable at http://www.unep.org/sbci
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Buildings and
Climate Change
Summary for Decision-Makers
Sustainable Buildings
& Climate Initiative
UNEP DTIE
Sustainable Consumption &
Production Branch
15 Rue de Milan
75441 Paris CEDEX 09, France
Tel: +33 1 4437 1450
Fax: +33 1 4437 1474
E-mail: unep.tie@unep.org
www.unep.fr/scp/sun
1
Preface
Preface
Today, it is widely accepted that human activities They need to make the mitigation of greenhouse gas
are contributing to climate change. The Fourth emissions from buildings the cornerstone of every
Assessment Report of the Intergovernmental national climate change strategy.
Panel on Climate Change (IPCC) estimated that
between 1970 and 2004, global greenhouse gas This Summary for Decision-Makers presents the
emissions due to human activities rose by 70 current state of thinking on how the potential for
percent (IPCC, 2007). While the full implications of greenhouse gas emission reductions in buildings
climate change are not fully understood, scientific can be realized. It has been compiled by the
evidence suggests that it is a causal factor in rising Sustainable Building and Climate Initiative (SBCI),
sea levels, increased occurrence of severe weather a UNEP-hosted partnership between the UN and
events, food shortages, changing patterns of public and private stakeholders in the Building
disease, severe water shortages and the loss of Sector, which promotes sustainable building
tropical forests. Most experts agree that over the practices globally. One of UNEP-SBCI’s key
next few decades, the world will undergo potentially objectives is to ensure that Parties to the United
dangerous changes in climate, which will have a Nations Framework Convention on Climate Change
significant impact on almost every aspect of our (UNFCCC) have the information needed to support
environment, economies and societies. the mitigation of building-related greenhouse
gas emissions. This report is based on research
It is estimated that at present, buildings contribute conducted by the UNEP-SBCI under the guidance
as much as one third of total global greenhouse of its Climate Change Think Tank and in cooperation
gas emissions, primarily through the use of fossil with the Finnish research institute VTT, the Central
fuels during their operational phase. Past efforts to European University in Hungary, the Marrakech Task
address these emissions have had a mixed record Force of Sustainable Buildings and Construction,
of success, although there are many examples and the UNEP Risø Centre on Energy, Climate
which show that carefully considered and properly and Sustainable Development. The results of this
funded policies can achieve significant reductions. research have been published in three reports:
The new international agreement which will be Buildings and Climate Change – Status, Challenges
negotiated at Copenhagen in December 2009 and Opportunities (UNEP, 2007a), Assessment
provides decision-makers with an unprecedented of Policy Instruments for Reducing Greenhouse
opportunity to incorporate emissions from buildings Gas Emissions from Buildings (UNEP, 2007),
into a global strategy on climate change. However, and The Kyoto Protocol, the Clean Development
if the desired targets for greenhouse gas emissions Mechanism and the Building Sector (UNEP, 2008).
reduction are to be met, Decision-Makers have to UNEP-SBCI will continue to facilitate and support
tackle emissions from the Building Sector with much the implementation of these recommendations,
greater seriousness and vigor than they have to date. and welcomes other stakeholders and interested
partners to join it in this endeavor.
2
Foreword
Foreword
Building Opportunities for
Tackling Climate Change
In forty years we need to have reduced our emissions. Doing so can create jobs, save money
greenhouse gas emissions by at least 50% to – and most importantly, shape a built environment
avoid the worst-case scenarios of climate change. that is a net positive environmental influence – not
In eleven years we need to have achieved at least simply a ‘less-bad’ version of what we currently
a 25% reduction in emissions. In three years the have. Indeed, cost effective emission reductions
current global framework that sets legally binding and energy savings of more than 30% are possible in
targets for national emissions, and provides the many countries. Investing in achieving such results
architecture for global carbon trading – the Kyoto in the building sector also has the potential to boost
Protocol - will expire. In December 2009 the the local economy and improve living conditions,
world’s nations are gathered in Copenhagen to particularly for low-income communities.
negotiate an agreement on a new global protocol
that will enable humanity to achieve the necessary This report – Buildings & Climate Change: A
global targets. The challenge is great, but so are Summary for Decision-makers draws together
the opportunities. the findings of three years of research by UNEP’s
Sustainable Buildings & Climate Initiative (SBCI) and
The building sector contributes up to 30% of global it’s partners. It sets out priority actions that can be
annual green house gas emissions and consumes taken by policy makers and industry stakeholders
up to 40% of all energy. Given the massive growth locally, regionally and globally to deliver economically
in new construction in economies in transition, beneficial and significant reductions in building-re-
and the inefficiencies of existing building stock lated greenhouse gas emissions.
worldwide, if nothing is done, greenhouse gas
emissions from buildings will more than double in the One of UNEP-SBCI’s key objectives is to ensure
next 20 years. Therefore, if targets for greenhouse that Parties to the United Nations Framework
gas emissions reduction are to be met, it is clear Convention on Climate Change (UNFCCC) have
that decision-makers must tackle emissions from the information needed to support the mitigation
the building sector. Mitigation of greenhouse gas of building-related greenhouse gas emissions.
emissions from buildings must be a cornerstone of SBCI’s Industry stakeholders are already showing
every national climate change strategy. leadership and producing results. Buildings &
Climate Change: A Summary for Decision-makers
The world’s governments can successfully tackle presents a strategic approach to harnessing this
climate change by harnessing the capacity of capacity. The challenge now is for all nations to
the building sector to significantly reduce GHG support their building industries by mainstreaming
energy efficient and low-GHG emissions building.
Sylvie Lemmet
Director
Division of Technology, Industry and Economics
UNEP
3
Key Messages and Priorities for COP 15
6 Key Messages for COP 15
1 2
The building sector has the most Countries will not meet emission
potential for delivering significant reduction targets without supporting
and cost-effective GHG emission energy efficiency gains in the building
reductions. sector.
3 4
Proven policies, technologies and The building industry is committed to
knowledge already exist to deliver action and in many countries is already
deep cuts in building related GHG playing a leading role.
emissions.
5 6
Failure to encourage energy-efficiency
Significant co-benefits including
and low-carbon when building new
employment will be created by policies
or retrofitting will lock countries into
that encourage energy efficient and
the disadvantages of poor performing
low-emission building activity.
buildings for decades.
4 priorities to be addressed
1 2
Supporting energy efficiency and GHG
Prioritise the building sector as key
emission reduction programmes in the
to meeting national GHG emission
building sector must be recognised as
reduction targets.
a NAMA.
3 4
Develop baselines for building-related
CDM must be reformed to support
GHG emissions using a consistent
investment in energy efficient building
international approach to performance
programmes in developing countries.
monitoring and reporting.
4
Contents
Table of Contents
Eight Key Messages for Decision-makers 6
1 The Contribution of Buildings to Climate Change 8
2 “Building Blocks” for Developing Greenhouse Gas Mitigation Strategies for the Building Sector 16
3 Policy Options for Reducing Emissions from Buildings 22
Target 1: Improve the Energy Efficiency of Buildings 23
Target 2: Improve the Energy Efficiency of Household and Business Appliances 27
Target 3: Encourage Energy Generation and Distribution Companies to Support
Emission Reductions in the Building Sector 29
Target 4: Changes in Attitudes and Behavior 32
Target 5: Substituting Fossil Fuels with Renewable Energies in Buildings 34
4 International Cooperation for Emission Reductions from Buildings 38
Six Actions to Urgently Consider for the Post-Kyoto Agreement 42
5 Conclusions and Priority Actions for Creating a Carbon Neutral Buildings Sector 44
National and International Policy Makers 46
Municipalities 47
NGOs and Civil Society 47
Private Sector 48
Research and Education Institutions 48
A Final Word 49
6 Bibliography 50
Acknowledgements 56
List of Tables
Table 1. Major Barriers to Energy Efficiency in the Building Sector. 12
Table 2. Summary Table of Policies to Reduce Greenhouse Gas Emissions in the Building Sector 24
Table 3. Selected measures eligible for savings under the Energy Efficiency Obligations Schemes
in Four Countries 30
Table 4. Countries/States/Provinces Enacting Feed-in Policies 35
List of Figures
Figure 1. CO2 Emissions from buildings - IPCC High Growth Scenario 9
Figure 2. Estimated Economic Mitigation Potential by Sector and Region Using Technologies
and Practices Expected to be Available In 2030 10
Figure 3. Life Cycle Phases of Buildings 11
Figure 4. Small Savings from Large Numbers of End-Use Units Constitute the Long-Tail Distribution
of Building Sector Projects 14
Figure 5. Different Types of Residential Housing in South Africa 18
Figure 6. Outcome of the French Grenelle de l’Environnement 20
Figure 7. Energy Certification of New/existing Buildings 25
Figure 8. A Passive Apartment Building in Finland 36
Figure 9. Commonly Identified Energy Efficiency Technology Needs in the Building and
Residential Subsectors 39
List of Boxes
Box 1. Tax Incentives under the U.S. Energy Policy Act of 2005 26
Box 2. Leading by Example: Government Initiatives to Promote Energy Efficiency in Public Buildings 28
Box 3. Cap-and-Trade Scheme for Non-residential Buildings 31
5
8 Key Messages for Decision-makers
1
8 key messages for decision-makers
Buildings are responsible for more the majority of buildings which will be standing in
than 40 percent of global energy use 2050 have already been built, so policies should
and one third of global greenhouse encourage building owners to retrofit their buildings
gas emissions, both in developed and in such a way as to optimize emission reductions.
developing countries. In developing countries, particularly those
The main source of greenhouse gas emissions from undergoing rapid urbanization, policies should
buildings is energy consumption, but buildings are encourage property developers and construction
also major emitters of other non-CO2 greenhouse companies to incorporate energy and greenhouse
emissions such as halocarbons. While historically gas emission considerations into the feasibility and
4
the majority of emissions emanated from developed design stages of buildings.
countries, it is expected that in the near future the
level of emissions from buildings in rapidly industri- Most developed countries and many
alizing countries will surpass emission levels from
2
developing countries have already
buildings in developed countries. taken steps towards reducing
greenhouse gas emissions from the
The Building Sector has the largest Building Sector, but these steps
potential for delivering long-term, have had a limited impact on actual
significant and cost-effective emission levels.
greenhouse gas emissions. This is due to a number of barriers which reflect
Furthermore, this potential is relatively the nature of the sector, such as the fact that there
independent of the cost per ton of CO2 eqv. are many small reduction opportunities spread
achieved. With proven and commercially available across millions of buildings; different stakeholders
technologies, the energy consumption in both new are involved at the various stages in a building’s
and existing buildings can be cut by an estimated life; these stakeholders have different economic
30 to 80 percent with potential net profit during the interests in terms of valuing investments in energy
building life-span. This potential for greenhouse efficiency measures; energy efficiency investments
gas emission reductions from buildings is common are perceived to be costly and risky; and there is
to developed and developing countries, as well as still a lack of practical knowledge about how to
3 5
countries with economies in transition. implement energy efficiency measures.
Buildings have a relatively long To overcome these barriers,
lifespan, and therefore actions taken governments must take the lead by
now will continue to affect their prioritizing the building sector in their
greenhouse gas emissions over the national climate change strategies and
medium-term. putting in place a number of “building
The full extent of the life-time emissions of a building blocks”.
can best be understood by using the life-cycle (LCA) These are the essential tools for designing effective
approach. The LCA approach reveals that over 80 policies, and include: credible and comparable
percent of greenhouse gas emissions take place energy performance standards; accurate and
during the operational phase of buildings, when comprehensive data and information about the
energy is used for heating, cooling, ventilation, Building Sector; the appropriate skills-base and
lighting, appliances, and other applications. A capacity to assess energy performance and
smaller percentage, normally 10 to 20 percent, of implement energy efficiency policies; and systems
the energy consumed is for materials manufacturing and frameworks for consultations with all major
and transportation, construction, maintenance stakeholders. Governments must work together
renovation and demolition. In developed countries, with the building and construction industry, NGO
6
and civil society organizations, research and Convention on Climate Change provides the best
educational institutes, and most importantly, the framework for facilitating this cooperation, but there
public, to achieve the common goal of reducing
6
is an urgent need to make the flexible financing
greenhouse gas emissions from buildings. mechanisms of the Kyoto Protocol more effective
in addressing greenhouse gas emissions from the
With these “building blocks” in place, Building Sector. In this regard, the current structure
governments are well placed to select of the Clean Development Mechanism (CDM) must
and design appropriate policies to be reformed or additional mechanisms created
reduce emissions from new and to support developing countries’ efforts to reduce
existing buildings. emissions from the Building Sector. Furthermore,
There are five main policy targets: increase energy efficiency and greenhouse gas emission
the energy efficiency of buildings; increase the reduction programs in the Building Sector should
energy efficiency of appliances which use energy; be recognized as a Nationally Appropriate Mitigation
encourage energy generation and distribution Action (NAMA). At the same time, sufficient
companies to support emission reductions in the incentives to attract private sector financing must be
8
Building Sector; change attitudes and behaviour put in place.
towards energy consumption; and promote the
substitution of fossil fuels with renewable sources Reducing emissions from buildings
of energy. Governments have a variety of policy will bring multiple benefits to both the
instruments, including regulatory, fiscal, economic, economy and to society.
informational and capacity building measures, The construction, renovation, and
to choose from. An assessment by UNEP’s maintenance of buildings contribute 10 to
Sustainable Building and Climate Initiative found 40 percent of countries’ Gross Domestic Product
that there are many policy instruments which are (GDP), and represent on a global average 10 percent
not only effective in achieving emission reductions, of country-level employment. If carefully planned,
but can also result in net savings when the energy
7
greenhouse gas mitigation strategies for buildings
saved is factored into the assessment. can stimulate the growth of new businesses and
jobs, as well as contribute to other, equally pressing,
At no other time has the case for social development goals, such as better housing
international cooperation to address and access to clean energy and water. Decision-
climate change been more pressing makers should seize the opportunity offered by the
than now. climate change crisis to build the foundation for
The United Nations Framework sustainable development today and for the future.
7
Chapter 1 The Contribution of Buildings to Climate Change
The Contribution of Buildings Under the IPCC’s high growth scenario, this figure
could almost double by 2030 to reach 15.6 billion
to Climate Change
metric tons CO2 eqv. (Figure 1) (Levine et al, 2007).
As Figure 1 shows, historically the majority of
Today, buildings are responsible for more than 40
emissions were generated from North America,
percent of global energy used, and as much as one Western Europe, and the Eastern Europe, Caucasus
third of global greenhouse gas emissions, both in and Central Asia (EECCA) regions, but based on
developed and developing countries. In absolute the high growth scenario given in Figure 1, the total
terms, the Fourth Assessment Report of the IPCC emissions from developing countries will surpass
estimated building-related GHG emissions to be these regions by 2030.
around 8.6 billion metric tons CO2 eqv in 2004
(Levine et al, 2007). What is particularly worrying The good news is that the Building Sector has
is the rate of growth of emissions: between 1971 the largest potential for significantly reducing
and 2004, carbon dioxide emissions, including greenhouse gas emissions compared to other
through the use of electricity in buildings, is major emitting sectors. This potential is relatively
estimated to have grown at a rate of 2.5% per independent of the cost per ton of CO2 equ.
achieved (IPCC, 2007). Figure 2, from the IPCC’s
year for commercial buildings and at 1.7% per
Fourth Assessment Report, shows that the potential
year for residential buildings (Levine et al, 2007).
for greenhouse gas reductions from buildings
Furthermore, the Buildings and Construction
is common to both developed and developing
Sector is also responsible for significant non-CO2
countries, as well as countries with economies in
GHG emissions such as halocarbons, CFCs, and transition. What this means is that with proven and
HCFCs (covered under the Montreal Protocol), commercially available technologies, the energy
and hydrofluorocarbons (HFCs), due to their consumption in both new and existing buildings
applications for cooling, refrigeration, and in the can be cut by an estimated 30 to 80 percent with
case of halocarbons, insulation materials. potential net profit during the building life-span.
Figure 1. CO2 emissions from buildings (including through the use of electricity) – IPCC High Growth Scenario.
Note: Dark red: historic emissions. Light red: projections 2001 – 2030. 2000 – 2010 data adjusted to actual 2000 carbon
dioxide emissions. EECCA= Countries of Eastern Europe, the Caucasus and Central Asia. Source: Levine et al, 2007.
9The Contribution of Buildings to Climate Change
Assessing Emissions By far, the greatest proportion of energy is used
through a Life Cycle during a building’s operational phase. Though
Approach figures vary from building to building, studies
suggest that over 80 percent of greenhouse gas
Greenhouse gas emissions from buildings primarily emissions take place during this phase to meet
arise from their consumption of fossil-fuel based various energy needs such as heating, ventilation,
energy, both through the direct use of fossil fuels and air conditioning (HVAC), water heating, lighting,
and through the use of electricity which has been entertainment and telecommunications (Junnila,
generated from fossil fuels. Significant greenhouse 2004; Suzuki and Oka, 1998; Adalberth et al, 2001).
gas emissions are also generated through A smaller percentage, generally 10 to 20 percent,
construction materials, in particular insulation of energy is consumed in materials manufacturing
materials, and refrigeration and cooling systems. and transport, construction, maintenance and
Broadly speaking, energy is consumed during the demolition. Governments can therefore achieve the
following activities: greatest reductions in greenhouse gas emissions
• manufacturing of building materials (‘embedded’ by targeting the operational phase of buildings.
or ‘embodied’ energy)
• transport of these materials from production Energy Consumption and
plants to building sites (‘grey’ energy); Economic Development
• construction of the building (‘induced’ energy);
• operation of the building (‘operational’ energy); The energy consumption during the operational
and phase of a building depends on a wide range of
• demolition of the building (and recycling of their interrelated factors, such as climate and location;
parts, where this occurs). level of demand, supply, and source of energy;
function and use of building; building design and
Graham (2003) uses a Life Cycle Approach to link construction materials; and the level of income and
emissions to the different stages of a building’s life behavior of its occupants. Climatic conditions, and
(Figure 3). the type of environment in which a building is found,
Figure 2. Estimated economic mitigation potential by sector and region using technologies and practices
expected to be available in 2030. The potentials do not include non-technical options such as lifestyle changes.
Source: IPCC, 2007a.
10Chapter 1
affect every aspect of a building’s energy use over electricity was available. More significantly, the
its lifetime. Most countries, and even states within generation of electricity itself is a major source of
countries, have multiple climate zones. GHG emissions, unless it comes from renewable
sources such as hydroelectric power plants and
More significantly, however, the level of greenhouse solar energy, or from nuclear energy. At the global
gas emissions from buildings is closely correlated level, it has been estimated that direct combustion
with the level of demand, supply and source of of energy from fossil fuels in buildings released
energy. In many low-income countries, especially approximately 3 GtCO2 in 2004, compared with 8.6
in rural areas, a large proportion of operational GtCO2 per year from all energy end users (Levine
energy is derived from burning wood and other et al, 2007). Similarly, the Carbon Monitoring For
biomass, such as dung and crop residues. The Action (CARMA) database of carbon emissions of
IEA estimates that as many as 2.4 billion people more than 50,000 power plants and 4,000 power
use biomass for cooking and heating, and that companies in every country suggests that power
this number is likely to increase in the future (IEA, generation using fossil fuels accounts for 40% of all
2002). In many countries, the technologies used carbon emissions in the United States and about
to burn the biomass, such as cooking stoves, are one-quarter of global emissions (CARMA web site).
often very inefficient. In China, for example, rural
energy use per capita was three times greater In most countries the residential sector accounts for
than urban energy use due to the low efficiency the major share of total primary energy consumption.
of biomass combustion for cooking and space Nevertheless, the energy consumption in non-resi-
heating (Tonooka, Y. et al. 2003). dential buildings such as offices, public buildings and
hospitals is also significant and growing. China for
As countries develop, and traditional fuels are example is expected to add the equivalent of twice
complemented by and replaced by electricity and the current U.S. stock of office buildings by 2020
gas, the potential for greenhouse gas emissions (LBL, 2007). In terms of international averages, most
increases profoundly for two main reasons. Access residential energy in developed countries is consumed
to electricity can stimulate demand for electrical for space heating (60%, although not as important
appliances, thereby increasing demand for energy in some developed countries with a warm climate,
over and beyond the level it had been before but in this case energy may be used for cooling
Figure 3. Life Cycle Phases of Buildings
Source: Graham, 2003.
Avoiding & Initial Emissions Ongoing Emissions
Minimising Potential Accrue Accrue
Emissions
Project Life Cycle Process
Feasibility: Demolition,
Pre-design and Building Reuse and
Construction Operation reuse and Landfill
development design refurbishment
planning recycling
Reuse of existing structure; Material salvage for reuse
deconstruction and reuse on other building projects
of components or materials or for reprocessing by other
industries
11The Contribution of Buildings to Climate Change
Table 1. Major Barriers to Energy Efficiency in the Building Sector.
Sources: Carbon Trust (2005) & Levine et al 2007 * New categories & columns (UNEP-SBCI, 2007).
Barrier Definition Examples Countries* Possible remedies* References
categories
Economic/ Ratio of invest- Higher up-front costs for Most coun- Fiscal and economic Deringer et
financial bar- ment cost to more efficient equipment tries instruments such as al 2004
riers value of energy Lack of access to financing tax rebates, Kyoto Carbon
savings Energy subsidies Especially Flexibility Mecha- Trust 2005,
Lack of internalization of developing, nisms, subsidized Levine et al
environmental, health, and but also loans, regulatory 2007
other external costs developed instruments. Or in-
countries crease energy price,
remove energy price
subsidies
Hidden costs/ Cost or risks Costs and risks due to All countries Appliance standards, Carbon
benefits (real or per- potential incompatibilities, building codes (to Trust 2005,
ceived) that are performance risks, transac- overcome high trans- Levine et al
not captured tion costs etc. action costs), EPC/ 2007
directly in fi- Poor power quality, partic- ESCOs, public leader-
nancial flows ularly in some developing ship programs
countries
Market fail- Market struc- Limitations of the typical All countries Fiscal instruments Carbon
ures tures and building design process and incentives Trust 2005,
constraints Fragmented market struc- Product standards Levine et al
that prevent ture Regulatory-normative 2007
a consistent Landlord/tenant split and Regulatory-informa-
trade-off be- misplaced incentives tive
tween specific Administrative and regula- Economic instru-
EE investment tory barriers (e.g. in the ments
and energy incorporation of distributed Technology transfer,
saving benefits generation technologies) mechanisms
Imperfect information
Unavailability of energy ef-
ficiency equipment locally
12Chapter 1
Table 1. Continued
Barrier Definition Examples Countries* Possible remedies* References
categories
Behavioural Behavioural Tendency to ignore small Developed Support, information Carbon
and organiza- characteristics energy saving opportuni- countries and voluntary action: Trust 2005,
tional barriers of individuals ties Voluntary agreements Deringer
and companies Organizational failures (e.g. Information and train- et al 2004,
that hinder en- internal split incentives) Developing ing programs Levine et al
ergy efficiency Non-payment and electric- countries 2007
technologies ity theft
and practices Tradition, behaviour and
lifestyle, Corruption
Transition in energy
expertise: Loss of tra-
ditional knowledge and
non-suitability of Western
techniques
Information Lack of in- Lacking awareness of Especially Awareness raising Carbon
barriers* formation consumers, building man- developing, campaigns, Training Trust 2005,
provided on agers, construction compa- but also of building profes- Yao et
energy saving nies, politicians developed sionals, regulatory- al. 2005,
potentials countries informative Evander et
al. 2004
Political and Structural Process of drafting local Most de- Enhance implementa- Yao et al.
structural characteristics legislation is slow veloping tion of standards 2005
barriers* of political, Gaps between regions at (and some Deringer et
economic, different economic level developed) Incentive policy al 2004
energy system Insufficient enforcement of countries encouraging EE build-
which make ef- standards ing design, Enhance
ficiency invest- Lack of detailed guidelines, international coopera-
ment difficult tools and experts tion and technology
Lack of incentives for EE transfer, Public lead-
investments ership programs
Lack of governance leader-
ship/ interest
Lack of equipment testing/
certification
Inadequate energy service
levels
13The Contribution of Buildings to Climate Change
emission reduction / unit
Figure 4. Small savings
from large numbers of
end-use units constitute
Long tail the long-tail distribution of
building sector projects
Source: Adapted from
Hinostroza et al., 2007, in
UNEP, 2008.
medium Unit
Unit number
number
to large
large number of small end-use units (buildings) owned
units
by many owners
(buildings)
purposes) with this application followed in order by diverse energy needs. Unlike energy production and
water heating (18%) and domestic appliances (6% other sectors which have large emission reduction
for refrigeration and cooking, 3% for lighting) with potentials at a small number of intervention points,
other uses accounting for 13% (UNEP, 2007). In the buildings sector has many small reduction
hotter climates, much less or no energy is used for opportunities spread across millions of buildings.
space heating but a significant proportion of energy For this reason, some experts have referred to
may be used for cooling purposes. However, the energy efficiency projects in buildings as typical
relative share of different energy applications varies “long tail” projects – it is relatively easy to achieve
from country to country, as well as from household to large emission reductions per unit at the top end of
household. This is partly explained by differences in the range of buildings (going from large to small),
income levels and behavior of building occupants. but becomes increasingly difficult as the size of the
buildings gets smaller (Figure 4). Given the large
Barriers to realizing number of buildings, the aggregate savings from
emission reduction the “long tail” are likely to exceed the savings from
potentials the top end.
Most countries have introduced policies to reduce Fragmentation of the building sector
greenhouse gas emissions from buildings through Buildings have a long life cycle with many different
measures to improve energy efficiency. However, stakeholders involved in different phases of
these policies have not resulted in an actual a building’s life, such as property developers
reduction in emissions. Many studies have been and financiers, architects, engineers, building
conducted to try to understand why the energy managers, occupants and owners. The decisions
savings potential in buildings is so difficult to taken by these various stakeholders will all have
achieve (see Table 1, p. 12-13; also UNEP, 2007a; an impact on the level of emissions of the building
Deringer et al, 2004; Westling et al, 2003; Vine, over its lifetime, but there are very few opportunities
2005; IPCC, 2007, WBCSD, 2007 and 2009). or incentives for coordination between them. For
Some of the underlying causes for the slow uptake example, as noted in Figure 4 above, decisions
of energy efficiency measures in the sector are taken during the Feasibility Assessment and
discussed below. Design phases in the early stages of a building’s life
will have a major impact on the level of emissions
A large number of small reduction during the Operational Phase, but most feasibility
opportunities assessments do not account for the life-time
There are hundreds of millions of individual buildings running costs of the building because these are not
in the world, each one presenting multiple and paid for by the property developer.
14Chapter 1
Perceived “first cost” barrier and split The Need for a Long-Term
economic interests Perspective
Perhaps the largest barrier to energy efficiency
improvements in buildings is the “first cost” barrier of Due to their long life cycle, it is essential that
energy efficiency measures in existing buildings due measures to reduce emissions for both new and
to the limited time which an occupant of a building existing buildings are designed to have the maximum
has to recover the cost. In rented properties, many impact and are costed over the expected lifetime
tenants are unwilling to make investments in energy of the buildings. For developed countries and
economies in transition, most of the buildings that
saving features because they do not expect to live
will be operating in 2050 have already been built,
in or use that property long enough to recoup their
and therefore policies to reduce emissions from
investment through savings in their energy bills. In
the Building Sector should focus on adapting and
addition, energy costs are often a comparatively
retrofitting existing buildings to the optimal energy
small part of the overall running costs of a building.
efficiency standard. Initiatives which encourage
The economic incentives derived from lower energy retrofits at sub-optimal level may “lock in” much
costs are therefore too weak to induce owners and of the mitigation potential of buildings, thereby
tenants to invest in energy efficiency measures. failing to achieve the maximum level of emission
reductions. In order to encourage building owners
Lack of awareness about low cost to maximize the emission reduction potential from
energy efficiency measures retrofits, policy tools should be designed to support
The above barrier is compounded by the perception multiple actions, which, taken as a whole, achieve
amongst property developers and contractors that maximum efficiency performance. The ‘zero rate
energy efficiency measures add significantly to eco-loan’ introduced for homes in France, for
the overall costs of a building project, in particular example, was designed so that it can be used
through costly technological solutions. There is in conjunction with tax credits and for a range of
therefore a need for awareness raising activities retrofitting activities (see Box 2, p. 28).
across the spectrum of stakeholders about low
In developing countries, retrofitting existing buildings
cost energy efficiency measures that have been
at the optimal level is also a priority. In this regard,
proven to be equally, if not more, effective than the
there is tremendous scope for using this opportunity
application of high cost technologies.
to update the heating and cooling technologies
used in buildings, as well as implementing low cost
Lack of indicators to measure energy but effective passive solutions to improve energy
performance in buildings efficiencies such as thermal mass and sunshades.
Most building occupants have little or no information Developing countries, particularly those undergoing
about the energy savings potentials of the buildings rapid construction growth, should set optimal energy
they live in and occupy. Furthermore, the lack of performance standards if they are to avoid the “lock
clear and verifiable indicators with which to measure in” effect described above. It should be noted that
and compare energy consumption makes it difficult global architectural trends, such as the use of glass
to gauge the savings derived from energy efficiency envelopes in high-rise office buildings, may not be
improvements. Energy performance requirements appropriate for their climatic conditions (particularly
and indicators are therefore one of the main in hot climates). More research on appropriate
“building blocks” for a successful greenhouse gas building materials, in terms of embodied energy,
durability, thermal mass, and cost, for developing
mitigation strategy for buildings.
countries, is required.
15Chapter 2 “Building Blocks” for Developing GHG Mitigation Strategies for the Building Sector
“Building Blocks” for greenhouse gas emissions from both existing and
Developing GHG Mitigation new buildings.
Strategies for the Building
Sector Building Commissioning
Energy performance indicators are used in the
The experience of countries which implemented commissioning process of buildings, in other
energy efficiency measures following the two words, to assess whether a building’s systems
major energy crises of the 1970s show that current have been designed, installed and made ready to
barriers to energy efficiency in buildings can be perform in accordance with the design intent and
overcome. To do this, Decision-Makers must the building owner’s operational needs. Because
first have a number of essential “building blocks” of the lack of energy performance indicators,
in place. These include energy performance energy management tools and procedures have
requirements and indicators; appropriate data not been systematically established and applied
and information about their Building Sector, the to the design and commissioning of buildings,
capacity to analyze this data, and the ability to especially in developing countries, and knowledge
coordinate and facilitate policies which address and expertise remain at a low level.
GHG emissions from buildings.
Self Regulation and Fine-Tuning of
Energy Performance Energy Use
Requirements and Energy performance indicators allow building
Indicators
owners and building users to assess the costs and
benefits of energy efficiency investments during the
Energy performance indicators measure the
operational phase of the building. During this phase,
performance of buildings in terms of their
continuous monitoring and periodic adjustments to
energy use and efficiency. Energy performance
design features can lead to substantial savings. For
requirements are set using these indicators,
example, close monitoring of a sustainable building
according to area of space covered, for example
site in Oberline, Ohio in the USA led to controls
in heating space or lighting, and adjusted for
and equipment changes that reduced initial site
building type, location, usage, and so on. While
energy use by 37 percent (Torcellini et al., 2006).
some countries have energy performance
Experiences in developing countries show similar
requirements, in many countries there are no
results: one study found that fine-tuning during
agreed methodologies or indicators to compare
the energy efficiency in buildings against. As the first year of operation reduced total energy
energy performance requirements are an essential consumption in several sustainable buildings
component of any GHG mitigation strategy for in Kuala Lumpur, Malaysia by 20 to 30 percent
the Building Sector, they should be established at (Kristensen, 2007).
the national, and, where appropriate, the regional
and municipal levels. Examples of how energy National Greenhouse Gas Inventories
performance requirements are used summarized Energy performance indicators are critical in
below. compiling reliable national inventories of energy
consumption and greenhouse gas emission from
Building Codes the national building stock. Their usage can also
Energy performance requirements can be used to expand the range of financing options open to
set performance targets in building codes. Building countries, especially under the Clean Development
codes have been found to be one of the most Mechanism of the UNFCCC, because they can be
effective and cost-effective policies in reducing used to compare emissions over time.
17“Building Blocks” for Developing GHG Mitigation
Strategies for the Building Sector
Part of the difficulty in setting energy performance data on energy use and efficiency. Given the
requirements come from the great diversity in how diversity in types of buildings, this is a serious
buildings use energy. This is why it is important for challenge for many countries. In South Africa,
policy makers to have as much information about for example, residential housing has been divided
the size and characteristics of the Building Sector into four categories: dwelling house < 80 m2
as possible. (estimated to number 3.8 million, or 30% of the
residential building stock in 2006); dwelling-house
Data and information => 80 m2 (estimated at 3.6 million, or 29% of
about the size and building stock); flats and townhouses (1.0 million
characteristics of the or 8% of building stock), and other types, including
Building Sector backyard properties, informal and squatter units,
and traditional/rural housing (estimated 4.1
Most countries have fairly good data about million, or 33% of building stock) (BMI-BRSCU,
aggregate energy production and consumption at StatsSA 2008, as cited in Milford, 2008) (Figure
the national level, but not many have sector-level 5). Without disaggregated data, such as climate
Figure 5. Different Types of Residential Housing in South Africa
Source: BMI-BRSCU, StatsSA 2008, as cited in Milford, 2008
Dwelling units ≥ 80 m2 Townhouses
Flats Dwelling units < 80 m2
Informal Dwelling Units Rural / Traditional Housing
18Chapter 2
and temperature, size, age, and other character- requires appropriate training and understanding of
istics such as construction materials and potential what the policies are and what steps are needed
or actual use of natural ventilation, it is extremely if the object which is subject to the regulation falls
difficult to design and implement policies for short of the legal standard. The lack of enforcement
greenhouse gas emission reduction. The lack of has been identified as a major weakness of energy
such data has been cited as a major obstacle to efficiency policies in developing countries.
estimating the greenhouse gas emission reduction
potential in several studies (de Buen, 2008 for Technical knowledge and skills
Mexico, Milford, 2008 for South Africa). In order to propagate a new technology or
building technique, the building professionals
Capacity to Design involved must be able to actually apply them. In
and Implement Energy this regard, Baden et al (2006), list the following
Efficiency Measures training needs for the development of personnel
to certify a building’s performance: qualification
An important, but often overlooked, determinant of raters; development of code of standards for
of success in reducing greenhouse gases from the field and performance testing verification;
buildings lies in the capacity of governments and definition of quality assurance requirements; and
other stakeholders in the Building Sector to design the definition of insurance requirements.
and implement policies effectively. Policies to
address greenhouse gas emissions from buildings Today, many governments have dedicated
are usually multi-faceted and involve more than agencies and staff working for the promotion
one stakeholder. Capacity-building activities must of energy efficiency. According to a survey of
therefore involve the relevant parties to have the 70 countries conducted by the World Energy
desired effects. Different types of skills are needed Council and ADEME in 2008, about two thirds
as indicated below. of the countries surveyed have a national energy
efficiency agency and over 90 percent have a
Data collection, analysis and use Ministry department dedicated to energy efficiency
As noted above, energy performance indicators (WEC, 2008). The European Union has even
are a critical ingredient in a wide variety of policy created an “Intelligent Energy Europe” agency
measures. However, without the capacity to to manage energy efficiency projects including
collect, analyse and use data pertaining to energy for buildings, as well as help establish local and
consumption in buildings, government officials regional energy efficiency agencies (European
and building professionals alike will not be able Commission Intelligent Energy Europe web site).
to use them. Building this capacity requires both These agencies often play a coordinating role to
training as well as the availability of equipment facilitate consultative processes and communica-
to measure energy use. The availability of better tions between stakeholders, including between
data could also facilitate the application of energy different branches of the government itself.
use simulation software for buildings, which are
proving to be effective tools for building designers Consultative Frameworks
and engineers. for Policy Making and
Communication
Enforcement of regulatory policies
Regulatory policies, such as Building Codes or The Building Sector is so vast, and is dispersed over
Energy Efficiency Standards for appliances, will such a wide area that governments will not be able
only make an impact on reducing greenhouse to bring about greenhouse gas emission reductions
gas emissions if they are enforced. Enforcement from buildings without the active involvement of
19“Building Blocks” for Developing GHG Mitigation
Strategies for the Building Sector
all stakeholders concerned. These stakeholders 2007. It involved non-governmental organizations,
include municipalities, private businesses and the union representatives, employers, local authorities,
financial sector, NGO and Civil Society actors, and French government officials. Workgroups
research and educational institutions, and of in different environmental policy areas drew the
course, ordinary citizens. To harness their collective French environmental roadmap for the next few
energies, national governments must take the lead years. The process is shown in Figure 6.
in the coordination and facilitation of greenhouse
gas mitigation policies. Various forums can serve The Grenelle resulted in a number of important rec-
to facilitate consultative processes. In France, for ommendations for the building sector, including:
example, a multiparty environmental summit was
held over several months in 2007 and resulted in • For new buildings, primary energy use is
several major policy changes with regard to energy expected to be under 50 kilowatt hours per
use in buildings (Box 2). Meanwhile in the U.K., square meter per year by the end of 2010 for
the government launched a major consultative public and tertiary buildings and for all new
process in 2008 to agree on how to define zero buildings by the end of 2012. The ultimate goal
carbon homes that will apply to all new homes for 2020 is for all new buildings to be passive or
built from 2016, as well as to seek views from both energy-positive, meaning buildings will generate
the building and construction industry and non- more energy than they consume.
governmental organizations on the potential to • For existing buildings, an ambitious target of
achieve non-domestic, zero carbon buildings from 38% reduction in overall energy consumption by
2019 (UK Department for Communities and Local 2020 was adopted, with a special set of actions
Government, 2008). for public buildings. To support this process,
a complete set of financial schemes has been
The Grenelle de l’Environnement was a multiparty implemented or reinforced. For example, the
national summit which took place over several “Zero Rate Eco-loan”, which provides loans to
months in mid-2007 and concluded late October property owners of up to €30,000 loan over 10
Figure 6. Outcome of the French Grenelle de l’Environnement
Stage 1 Stage 2 Stage 3
Defining Public
Decision-making
proposed action Debate
Local meetings
involving citizens in
the debate
6 Workgroups & The Environment
2 Intergroups Round Table
Themed
discussion forums
on the Internet
15 July to 28 September to
24/25 October
25 September 22 October
20Chapter 2
years, was officially launched in April 2009. The
objective of this financial tool is to encourage
owners to adopt a “global energy performance
approach” when refurbishing their properties,
either through a combination of energy efficiency
investments or by achieving an overall minimum
energy performance. As of mid-September
2009, 30,000 zero rate eco-loans have been
granted.
The French authorities have already begun
implementing some of the Grenelle objectives.
On April 30, 2008, French Minister of State and
Minister of Ecology Jean-Louis Borloo announced
the completion of Grenelle 1, a legal framework
that translates the Grenelle conclusions into law.
The Grenelle 2 law is currently in process and
the corresponding finance law has been voted.
(Source: UNEP, 2008b. For more information
about the Grenelle, go to http://www.legrenelle-
environnement.fr )
21Chapter 3 Policy Options for Reducing Emissions from Buildings
Policy Options for Reducing The following sections outline the main policy
Emissions from Buildings instruments available to governments, grouped by
target. In almost all cases, these targets are best
In their Assessment of Policy Instruments for achieved through a combination of policies, or
Reducing Greenhouse Gas Emissions from “policy packages”, rather than one or two policies
Buildings (UNEP, 2007a), the authors classify implemented alone. Furthermore, there may be
policies for reducing greenhouse gas emissions overlap between the policy targets, for example,
from buildings into four categories, regulatory and promoting investment in energy efficiency measures
control instruments; economic and market-based (Target 1) while changing consumer behavior
instruments; fiscal instruments and incentives; (Target 4). Decision-makers can “mix-and-match”
and support, information and voluntary actions,
their policies to find the optimum solutions to their
and assess each for its cost effectiveness and
particular carbon energy scenarios.
its effectiveness in actually reducing greenhouse
gas emissions (Table 2 - next page). Many policy
Target 1: Improve the
instruments were not only found to be effective
in achieving emission reductions, but they also
Energy Efficiency of New &
resulted in net savings, in some cases of up US$ Existing Buildings
200 per ton of CO2 eqv avoided, if the benefits of
saved energy and the associated avoided expenses Broadly speaking, the energy efficiency of a building
are factored into the cost-benefit assessment. As is determined by the rate at which energy is lost
can be seen from Table 2, regulatory and control through the physical structure of the building (the
instruments were found to be effective in terms of building envelope), and the rate at which energy
emission reductions as well as cost. Economic is used to meet the energy needs and physical
and market-based instruments also scored fairly comfort of the occupants. These two factors are
well on both counts, as did one fiscal instrument often closely interrelated, because the physical
(tax exemptions and reductions). structure and design of a building, interacting with
the local climate, strongly influence the choice of
To select the most appropriate policies for the “carbon
energy system and the associated efficiency of
emissions” scenario of the Building Sector of their
that system. When considering policies to improve
countries, governments should consider what policy
the energy efficiency of buildings, therefore, it is
objective they wish to target. Broadly speaking, the
five major policy objectives, or targets, for reducing important to keep both factors in mind.
greenhouse gas emissions from buildings are:
Building Codes
Target 1: Increase the energy efficiency of new Almost all developed countries have Building
& existing buildings (both the physical Codes which include energy efficiency standards,
envelope, and the operational aspects while many developing countries are now passing
such as energy systems for heating, legislation for such codes. In most cases, these
ventilation and other appliances); codes tend to regulate new buildings, but recently
Target 2: Increase the energy efficiency of many developed country governments have
appliances (white goods, entertainment, amended their codes to cover renovations and re-
personal computers and telecommuni- furbishments of existing buildings. Most building
cation equipment); codes are performance based: that is, they set a
Target 3: Encourage energy and distribution maximum limit for level of heat transfer through the
companies to support emission building envelope and the level of heating/cooling
reductions in the Building Sector; demand, as well as require building equipment such
Target 4: Change attitudes and behavior; as heating and air conditioning systems, ventilation,
Target 5: Substitute fossil fuels with renewable water heaters and even pumps and elevators to
energies. meet certain energy performance standards.
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