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© OECD/IEA 2015 Energy Efficiency Training Week What are the steps? Set targets and develop policies Buildings Session 5 Buildings energy efficiency sessions done in partnership with:

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Page 1: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Energy Efficiency Training Week

What are the steps?Set targets and develop policies 

BuildingsSession 5 

Buildings energy efficiency sessions done in partnership with: 

Page 2: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

1. Where to start: Understanding building energy use2. Where to start: Energy efficiency potential in buildings3. Toolkit: Building technologies for low energy buildings4. Toolkit: Building energy efficiency policies5. What are the steps: Set targets and develop policies 6. What are the steps: Building energy codes 7. What are the steps: Incentives for energy efficient buildings8. Did it work: Tracking progress with energy efficiency indicators9. Did it work: Evaluating the multiple benefits of energy efficiency 

in buildings10. Where do I get help: International collaborations

Energy Efficiency Training WeekBuildings: Program

Page 3: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

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No. B

uild

ings - Rebates

- Green Loans

- CDM etc.

- Rebates

- Green Loans

- CDM etc.

- Voluntary Schemes

- Capacity Building

- Awareness Raising

- Voluntary Schemes

- Capacity Building

- Awareness Raising

Best PracticeBest PracticeMinimum Performance

Tambourines

BaselinesBaselines

CarrotsSticks

IllegalIllegal InnovationInnovation

Policy Goal: Market Transformation

-Codes

-Standards

-Regulations

-Codes

-Standards

-Regulations

Source: www.gbpn.org

Page 4: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Action Plan Development

1. Stock taking Existing policies and policy 

context; Transformational, tools, 

technologies & designs Work force skills & capabilities; Information, knowledge and 

awareness2. 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 & 

reporting4. Fundraising

MRV requirements NAMA, World Bank, Development 

Banks, GEF Bi‐lateral and multi‐lateral funds

Source: www.gbpn.org

Page 5: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Action Plan DevelopmentStock‐taking: residential building data

Source: www.gbpn.org

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© OECD/IEA 2015 

Action Plan DevelopmentStock‐taking: commercial building data

Source: www.gbpn.org

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© OECD/IEA 2015 

Action Plan DevelopmentStock‐taking: residential vs. commercial

Source: www.gbpn.org

Page 8: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Action Plan DevelopmentBaselines: Energy Demand and Emissions

Source: www.gbpn.org

Energy (Mtoe - million tonnes of oil equivalent) CO2 Emissions (MMT - million metric tonnes)

Baseline Residential Commercial Baseline

Residential buildings &

commercial & public services3

% of total fuel combustion4

Australia 2010 10.6 6.89 2010 12 3Brazil 2009 23.21 9.89 2010 20 5

Canada 2010 30.98 25.18 2010 70 13China 2009 350.09 60.26 2010 439 6

Denmark 2010 4.9 2.15 2010 4 9Europe 2010 326.97 160.76 2010 627 17France 2010 44.05 23.4 2010 85 24

Germany 2010 65.74 29.31 2010 147 19India 2009 168.45 150.46 2010 89 5

Indonesia 2009 56.46 4.25 2010 20 5Italy 2010 31.39 16.96 2010 76 19

Japan 2010 49.69 64.17 2010 153 13Korea 2010 19.86 20.5 2010 53 9

Mexico 2010 17.84 3.57 2010 23 6Russia 2009 109.4 38.02 2010 136 9

South Africa 2009 17.31 5.55 2010 15 4

United Kingdom 2010 44.59 14.96 2010 97 20

United States 2010 268.28 205.92 2010 541 10

Page 9: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

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Action Plan DevelopmentScenario analysis & goal setting

Source: www.gbpn.org

Scenarios for Thermal Energy demand based on analysis of 14 regions (GBPN, 2012)

Page 10: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Action Plan DevelopmentGoal setting: by construction type

Source: www.gbpn.org

Thermal Energy Savings by Building Type in India by 2050

2005 2050

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© OECD/IEA 2015 

Action Plan DevelopmentCapabilities & Multiple Benefits

Source: www.gbpn.org

Employment Well‐Being Awareness Knowledge Skills Motivation Digital Tools 

Assessing the Social & Cultural Capital

Page 12: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

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Action Plan DevelopmentImplementation Road Maps

Source: www.gbpn.org

NABERS NatH ERS ACThers EnerGuide CRESNET H ER

ne

Global Policy Priorities    

NZEB Roadmaps: Eastern EU

Rating & Disclosure: USA

Page 13: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Review Questions

What are your key barriers in implementing a ‘deep‐path’ policy action plan?

What would be the most effective incentives (carrots) in your jurisdiction?

What are your top priorities for capacity building? What are your targets for funding your policy action plans?

Page 14: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Energy Efficiency Training Week

What are the steps?Set targets and develop policies 

BuildingsSession 5 

Buildings energy efficiency sessions done in partnership with: 

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Policies and TargetsIntegrated Policies: Systems and Components

Promote integrated policy packages to accelerate energy efficiency opportunities

Source: IEA Building Energy Technology Roadmap 2013

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© OECD/IEA 2015 

Policies and TargetsMandatory Policies are Highly Effective

Minimum Energy Performance Standards (MEPS)  Reduce energy consumption and product price

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© OECD/IEA 2015 

ASEA

N

Brazil

China

Europe

anUnion

India

Mexico

Russia

SouthAfric

a

UnitedStates

Policy

Building codes with supporting infrastructure

Appliance and equipment standard

Deep renovation of existing buildings

Zero‐energy new buildings

Buildings Energy EfficiencyIEA’s Priority Policy Recommendations

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.

Page 18: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Source: IEA’s Energy Efficient Building Envelope Technology Roadmap

Buildings Energy EfficiencyIEA’s Policy Assessment for Construction

Page 19: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Policy & Target AssessmentUse this criteria to conduct your own assessment:Policy level Governance Energy

pricesInfrastructure

and human capacity

Materials at commodity

pricesVoluntary

programmesMandatory

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.

HighOne 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.

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Policy Assessment

Activity Circle the cells that match the situation in your country

Share policy opportunities based on this assessment

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© OECD/IEA 2015 

Buildings Energy EfficiencyIEA’s 2014 Global Policy Area Examples

Policy ActionArea

Near-term actions (through 2025)

Long-term actions (2025 to 2050)

Whole Building Enforceable building codes Net zero buildings in OECD Deep renovations @ 2%/year

Enforceable building codes Net zero buildings globally

Building Envelope

High performance envelopes R&D insulating windows R&D super thin insulation

Globally: 2-pane windows Cold climate: insulating windows Passivhaus standard

Heating & Cooling Equipment

Promote heat-pumps Gas condensing boilers R&D cold climate heat-pump

Prohibit electric resistance Require gas thermal and electric heat-

pumps

Water Heating Promote heat-pumps Instantaneous gas condensing R&D low-cost solar thermal

Require heat-pumps > 1.5 COP Require instantaneous condensing Promote low-cost solar thermal

Lighting Ban incandescent/halogen OECD R&D and promote solid state lighting

(LED) and innovation

Ban incandescent/halogen globally Performance standards for >100 lumens per

watt.Appliances & Cooling

Update appliance MEPS Promote efficient options

Performance metrics Financial policies

Page 22: What are the steps? - International Energy Agency are the steps: Incentives for energy efficient buildings 8. Did it work: Tracking progress with energy efficiency indicators 9. Did

© OECD/IEA 2015 

Building Energy Efficiency TargetsExample: United States Building Codes

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Energ

y use (In

dexed

to 19

75)

Residential Commercial

2007 Target: resulted in 32%improvement. More energy savings than any period. 

In 2007, US Congress directed US DOE to support efforts to reduce energy use in new buildings by at least 30% by 2010.

In October 2010, final voting confirmed code improvements that resulted in 32% energy savings. 

Years without much improvement

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Setting TargetsGlobal energy efficiency potential

More than 80% of energy efficiency potential in buildings are currently unrealised in existing policies

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© OECD/IEA 2015 

1. To achieve the 2 degree scenario, broad investment is needed.2. Compare current investments to estimated investment 

requirements. 

Setting TargetsLooking at future investment requirements by sector

5.3%2.8%83.4%8.4%

7.9%2.8%79.3%10.1%

27.8%3.0%46.2%23.1%

Source: IEA ETP 2015

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1. Energy efficiency in the buildings sector is currently projected by IEA 2 degree scenario to continue on the path of minimal investment and less impact than it could have. 

Setting TargetsUsing projections by sector & technology to 2050

Source: IEA ETP 2015

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Europe Energy Performance of Buildings DirectiveMoving toward new and retrofitted nearly‐zero energy buildings by 2020 (2018 in the case of Public buildings)

Application of a cost‐optimal methodology for setting minimum requirements for both the envelope and the technical systems

Europe Energy Efficiency Directive  The 2012 Energy Efficiency Directive establishes a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. 

Individual country level regulations and targets

Setting National EE Targets (Examples)

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© OECD/IEA 2015 

1. Space cooling, lighting and appliances offer minimal savings globally today, but significant savings in 2050.

2. Space heating offers significant energy savings throughout the entire period to 2050.  

Setting TargetsUsing projected buildings energy savings to 2050

Source: IEA ETP 2015

What would it take to achieve this in your country?

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1. Energy efficiency in space heating, water heating and cooking generate direct and indirect emission savings.

2. Electric‐based technologies generate significant indirect emissions savings.  

Setting TargetsUsing projected CO2 reductions to 2050

Source: IEA ETP 2015

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Achieve global emission reductions to 2050 equivalent to IEA’s 2 degree scenario through government, industry and consumer investment. 

Setting TargetsUsing projected CO2 reductions to 2050

Source: IEA ETP 2015

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Residential (88 EJ) Commercial (31 EJ)

Building SectorFinal energy consumption by fuel share, 2012

1. Direct fossil fuel use accounts for 36% of final energy consumption in the buildings sector.  

2. Direct plus indirect fossil fuel accounts for 60% of final energy. 

Source: IEA ETP 2015

Do you know the building energy use profile in your country?

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Building SectorHeating and cooling energy consumption and CO2, 2012

Heating and cooling in industry and buildings accounts for: almost 35% of total global primary energy use,  more than 40% of global final energy consumption and almost 30% of global CO2 emissions 

Source: IEA ETP 2015

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Discussion

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© OECD/IEA 2015 

Trainers: Peter Graham, Brian Dean Purpose: To teach emerging professionals in the emerging 

economies about how targets and policies can be used in tandem to meet energy and development goals.

Content: This course will discuss the options for and benefits of setting national and sectoral energy efficiency targets. This course will provide examples of how targets have been created to meet targets and how country goals can be met by setting targets and complimentary building energy efficiency policies. 

Energy Efficiency Training Week (Buildings)5. What are the steps: Set targets and develop policies