energy efficiency training week -...

© OECD/IEA 2016 © OECD/IEA 2015

Energy Efficiency Training Week

Toolkit: Building energy efficiency policies

Buildings: Session 6

Buildings energy efficiency sessions done in partnership with:

#EnergyEfficientWorld

sustainable energy partnerships

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1. Where to start: Understanding building energy use

2. Where to start: Energy efficiency potential in buildings

3. Toolkit: Building technologies for low energy buildings

4. Toolkit: Linking buildings energy efficiency policy to investments and finance

5. Toolkit: Building energy codes and standards

6. Toolkit: Building energy efficiency policies

7. What are the steps: Set targets and develop policies

8. Did it work: Evaluating the multiple benefits of energy efficiency in buildings

9. Did it work: Tracking progress with energy efficiency indicators

10. Energy Efficiency Quiz: Understanding energy efficiency in buildings

Energy Efficiency Training Week Buildings: Program


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Trainers: Brian Dean, Ksenia Petrichenko and Adam Hinge

Purpose: To teach emerging professionals in the emerging economies about building energy efficiency policies that can be used to reduce energy use in buildings. This course will include information that has been examined in IEA’s policy pathway series and the sustainable buildings book.

Scenario: There has been a change of government and the incoming government wants a range of options for interventions to rapidly increase energy efficiency. How do you identify, prioritise and quantify these policy options?

Energy Efficiency Training Week (Buildings) 6. Toolkit: Building energy efficiency policies


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Why do we need policies?

Source: Copenhagen Centre on Energy Efficiency #EnergyEfficientWorld

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Five measures save almost 5 Gt of emissions by 2030 & achieve a global emissions peak by 2020, without harming economic growth & using only proven technologies

Energy efficiency

49%

Reducing inefficient coal

Renewables investment

Upstream methane reductions

Fossil-fuel subsidy reform

17%

15%

10%

Emissions savings in the Bridge Scenario by measure, 2030

9%

Take five key actions, led by energy efficiency and renewables, to peak then reduce global energy emissions.

Why energy efficiency policies? The Bridge Scenario

Source: World Energy Outlook Special Report: Energy and Climate Change, IEA (2015) #EnergyEfficientWorld

© OECD/IEA 2016 Source: Institute for Building Efficiency, WRI #EnergyEfficientWorld

Why energy efficiency policies? Bridging the Efficiency Gap

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Policy Goal: Market Transformation

Source: www.gbpn.org #EnergyEfficientWorld

No. Build

ings

-

Best Practice Minimum Performance

Tambourines

Baselines

Carrots Sticks

Illegal Innovation

-Codes

-Standards

-Regulations

- Rebates

- Green Loans

- CDM etc.

- Voluntary Schemes

- Capacity Building

- Awareness Raising

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Menu of Policy Options

• Building codes, Product standards Codes & Standards

• Policy roadmaps and targets, Building performance targets, Energy efficiency obligations/ White Certificates Targets

• Data collection and baseline development, Energy audits, Building certification & rating, Disclosure of Energy Performance

Performance Information & Certification

• Energy taxes, Tax exemptions and reductions, Grants and rebates, Soft loans/ Revolving loan funds, Risk mitigation mechanisms, Preferential mortgages

Finance & Incentives

• Public building and facility energy improvement programs, Procurement and design regulations Government Leadership

• Public benefits charges, On-bill repayment, Revenue decoupling, Time-based pricing, Demand response, Smart metering Utility Actions

• Energy performance contract market enablers, Workforce Technical Training & Education, Business development for efficiency providers

Efficiency Industry & Workforce Capacity

• Awareness raising, education and information campaigns, Competition & awards programs, Feedback programs

Building Owner & Occupant Actions

Source: Institute for Building Efficiency, WRI #EnergyEfficientWorld

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Building Energy Efficiency Policies Policy Assessment Case Study: Mexico

Several instruments complement green lending in Mexico


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Building Energy Efficiency Policies Policy Assessment Case Study: Singapore

A unique combination of ‘carrots and sticks”


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Building Energy Efficiency Policies

Approach to policy development

Policy Selection

Policy Implementation

Enforcement

• Scoping • Targeting • Prioritising

• Action plan • Capacity • Funding

• Stakeholders • Strategy • Sticks & carrots

#EnergyEfficientWorld Source: Copenhagen Centre on Energy Efficiency

© OECD/IEA 2016

Available free at:

www.iea.org/topics/energyefficiency/

25 EE Policy Recommendations Across 7 Priority Areas


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Cross-sectoral 1. Energy efficiency data collection and indicators 2. Strategies and action plans; 3. Competitive energy markets with appropriate

regulation; 4. Private investment in energy efficiency 5. Monitoring, enforcement and evaluation of policies

and measures.

Buildings 6. Mandatory building energy codes and minimum

energy performance requirements; 7. Aiming for net zero energy consumption in buildings; 8. Improving the energy efficiency of existing buildings; 9. Building energy labels or certificates; 10. Improved energy performance of building

components and systems.

Appliances and Equipment 11. Mandatory MEPS and labels for appliances and

equipment; 12. Test standards and measurement protocols for

appliances and equipment 13. Market transformation policies for appliances and

equipment

Lighting 14. Phase-out of inefficient lighting products and systems; 15. Energy efficient lighting systems

Transport 16. Mandatory vehicle fuel efficiency standards; 17. Measure to improve vehicle fuel efficiency; 18. Fuel-efficient non-engine components 19. Improved vehicle operational efficiency through Eco-

driving and other measures . 20. Transport system efficiency

Industry 21. Energy Management in industry; 22. High efficiency industrial equipment and systems; 23. Energy efficiency services for small and medium

enterprises; 24. Complementary policies to support industrial energy

efficiency

Energy utilities 25. Energy Utilities and end-use energy efficiency.

25 EE Policy Recommendations Across 7 Priority Areas


© OECD/IEA 2016

EE Policy Recommendations (#6) Buildings: Codes & Standards

Mandatory building energy codes and minimum energy performance standards New buildings & buildings

undergoing renovation Building envelope and

equipment Energy codes and minimum

energy performance standards (MEPS)

Enforced and regularly strengthened

To minimise life-cycle costs. #EnergyEfficientWorld

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EE Policy Recommendations (#7) Buildings: Aiming for net-zero

Aiming for net-zero energy consumption in buildings Governments should support

and encourage Make commonly available,

when economically viable on a life-cycle cost basis

Set targets for market share for new construction by 2020

Set future building codes and MEPS based on net-zero building standards


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EE Policy Recommendations (#8) Buildings: Existing Buildings

Improving the energy efficiency of existing buildings Significant improvements to building envelopes and

systems during renovations. Policies should include:

An ambitious timeline and renovation rate MEPS for building envelope and systems, to be met during

renovations Energy audits, energy ratings and certification Finance and incentives to encourage investments in long-

lasting improvements Finance and incentives to encourage increased market

penetration of new high-efficiency products Training to improve building retrofit services Improvements to the efficiency of public-sector buildings


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EE Policy Recommendations (#9) Buildings: Labels or Certificates

Building energy labels or certificates

Governments should require building energy performance labels or certificates

To provide information to owners, buyers and renters.

At sale or rental #EnergyEfficientWorld

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EE Policy Recommendations Labels can be Effective

ENERGY STAR is a voluntary label for market transformation that has been developed as a brand.

Satisfaction Differential

Value Relevance Awareness

Performance Communications

Loyalty

SOURCE: US DOE #EnergyEfficientWorld

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EE Policy Recommendations (#10) Buildings: Components and Systems Performance

Improved energy performance of building components and systems

to improve the energy performance of all buildings.

Windows and other glazed areas

maximum share of glazed area

MEPS for windows to minimise life-cycle costs

A requirement for performance labelling

Standard test protocols and certified product testing

HVAC systems

MEPS for HVAC systems to minimise life-cycle costs

A requirement for energy efficiency labelling

Information and training for building designers, owners and others HVAC systems size, installation, testing and maintenance

Energy management and control systems

Reduce energy consumption and target energy-savings


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Building Energy Efficiency Policies IEA’s online database (www.iea.org/beep)


http://www.iea.org/beep/

© OECD/IEA 2016

How do we know what policies are needed?

Mapping policies against barriers

Incentives Utilities

Capacity

Building

POLICIES

Targets Awareness

BARRIERS

Codes

Bu

ild

ing

En

erg

y C

od

es

Ap

pli

ance

an

d E

qu

ipm

en

t

Sta

nd

ard

s

Bu

ild

ing

Eff

icie

ncy

Tar

get

Go

vern

me

nt

Pro

cure

me

nt

Da

ta C

olle

ctio

n a

nd

B

asel

ine

De

velo

pm

en

tC

om

pe

titi

on

an

d A

wa

rds

Pro

gra

ms

Au

dit

s -

Vo

lun

tary

an

d

Ma

nd

ato

ryR

atin

g an

d C

ert

ific

ati

on

P

rog

ram

sD

iscl

osu

re o

f P

erf

orm

an

ceP

ub

lic A

wa

ren

ess

C

amp

aig

ns

Gra

nts

& R

eb

ate

sR

isk

mig

ita

gio

n g

uar

an

tee

Re

volv

ing

Lo

an F

un

dE

ne

rgy

Pe

rfo

rma

nce

C

on

trac

tin

g E

na

ble

rsT

ax I

nce

nti

ves

Tax

Lie

n F

ina

nci

ng

Uti

lity

Pu

bli

c B

en

efi

t Fu

nd

On

-bil

l Fin

anci

ng

Re

ven

ue

De

cou

plin

gA

dva

nce

d M

ete

rin

g

Infr

astr

uct

ure

Tim

e-b

ase

d P

rici

ng

De

ma

nd

Re

spo

nse

Dir

ect

Te

chn

ica

l Ass

ista

nce

Wo

rkfo

rce

Tra

inin

g

Market

BARRIERS

Split incentives

Transaction Costs

Dispersed Market Involving Many Sectors

Price Distortions in Energy Market

Up-front Cost, Constrained Budgets

Perception of Investment Risk

Low Financial Institution Awareness

Lack of External Finance

Small Transaction Size

Lack of Technical Capacity in Market

Lack of Affordable Technology in Market

AwarenessLack of Information about Energy

Performance and Improvement Opportunities

Low Government Capacity on New Policy

Inter-agency Coordination Challenges

Little Public-Private Coordination

Market

Financial

Technical

Institutional


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ASE

AN

Bra

zil

Ch

ina

Euro

pe

an U

nio

n

Ind

ia

Mex

ico

Ru

ssia

Sou

th A

fric

a

Un

ite

d S

tate

s

Policy

Building codes with supporting infrastructure

Appliance and equipment standard

Deep renovation of existing buildings

Zero-energy new buildings

Buildings Energy Efficiency Policy Recommendations by Country

Note: Recommendations limited to top two for policy options, all items could be relevant for most countries. Red indicates immediate priority, while gold indicates second priority.

© OECD/IEA 2016

Pillars of a pathway for building efficiency policy

Who? Institutions Stakeholders Governance

How? Action Plan Capacity Finance

What? Scoping Targets Priorities


How do we know what policies are needed?

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Action Plan Development

1. Stock taking • Existing policies and policy

context;

• Transformational, tools, technologies & designs

• Work force skills & capabilities;

• Information, knowledge and awareness

2. Scenario analysis & goal setting • MRV baseline & mitigation

potential

• Market data and assumptions

• Best practice scenarios

• Multiple benefits analysis

3. Implementation roadmaps • Key milestones & strategic targets

• Capacity building, R&D, demonstration

• Monitoring, evaluation & reporting

4. Fundraising • MRV requirements

• NAMA, World Bank, Development Banks, GEF

• Bi-lateral and multi-lateral funds

#EnergyEfficientWorld Source: www.gbpn.org

© OECD/IEA 2016

Assessment of policy instruments for reducing GHG emissions from buildings

Effectiveness Cost-effectiveness

High Medium Low

Source: UNEP SBCI & CEU 2007 #EnergyEfficientWorld

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Policy Assessment Activity

Use this criteria to conduct your own assessment:

Policy level

Governance Energy prices

Infrastructure and human

capacity

Materials at commodity

prices

Voluntary programmes

Mandatory building

codes

Low

No active government

agency promoting

efficient construction.

Subsidies in place or below market prices.

Limited test capability and knowledge of

buildings, unproven buildings programme.

No local access to efficient materials

and high price premiums.

Limited to a few demo projects without lasting

impacts.

An agency is pursuing or has been granted authority to

pursue.

Medium

Shared responsibility

between construction and

energy departments.

Market-based prices without environment

impact.

Ability to test some products and university

expertise.

Some products are widely available

and cost-effective.

Educational materials and

advanced programmes introduced.

Mandatory building codes are in place but lack infrastructure.

High

One agency has responsibility and is active with funding.

Tariffs in place to account for

non-energy impacts.

Rating organisations, policy and

enforcement personnel, in place.

Mature markets with many cost-

effective products available.

Energy savings calculators,

simulation tools and incentives in

place.

Building codes demonstrate

efficient construction.


Circle the cells that match the situation in your country

Share policy opportunities based on this assessment

energy efficiency training week -...

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