Revolutionary Green: Innovation for Global Sustainability


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Revolutionary Green: Innovation for Global Sustainability - Green Building International Conference - Dr. Marianne Osterkorn - REEEP

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Revolutionary Green: Innovation for Global Sustainability

  1. 1. Revolutionary Green: Innovation for Global Sustainability Green Building International Conference Boston November 20th 2008 Dr Marianne Osterkorn REEEP CEO
  2. 2. OVERVIEW 1. Energy efficiency in buildings in a global context 2. Activities in the EU, India, China and the US 3. Barriers to energy efficiency in buildings 4. REEEP activities in energy efficiency
  3. 3. The impact of insulation is real and immediate When asked what two things individuals can do to address climate change, the reply from Sir Nicolas Stern: (Chief Economist of the World Bank from 2000-2003, holds I.G. Patel Chair at London School of Economics) • Eat less red meat; and • Insulate your home March 30, 2007, UC Berkley
  4. 4. Almost 40% of final energy is consumed by buildings Building sector is also the driver of the world economy - the sector accounts for 9% of GDP in China and the EU and for 7% in India Source: IEA
  5. 5. The rise in energy demand may be slowed down by the current global economic crisis, but will continue nonetheless. China accounts for 15% of world energy demand, with 19% of the world’s population. One half of the global cement production occurs in China as the country leads in new buildings and roads. Source: BP Yearbook, IEA
  6. 6. In 2007 China surpassed the US as the world's largest CO2 emitter Projected annual CO2 emissions in million metric tons However, China’s per capita emissions of 3.7 tons still remain far below the US per capita figure of 19.7 tons. Source: IEA
  7. 7. The US, OECD/Europe and Russia consume most of their energy in the building sector, with savings potential of over 50% Energy demand by sector 2005 Due to the energy-intensive industrial production in China, the building sector still accounts only for 19% of energy demand. Source:IEA
  8. 8. The greatest GHG savings potential can be achieved through end-use energy efficiency Improved efficiency in the building sector and de-carbonizing the power sector could bring emissions back to current levels by 2050. Source: IEA
  9. 9. The lost finances could have nearly saved our planet could have financed the reduction of could have financed the reduction of 60% of the GHG emissions 60% of the GHG emissions The current financial The current financial could finance the insulation of 60% could finance the insulation of 60% crisis will crisis will of all EU private homes of all EU private homes cost 2200 Billion USD Wind capacity could be increased cost 2200 Billion USD Wind capacity could be increased five times the installed capacity of five times the installed capacity of China China
  10. 10. Buildings offer emission reduction at negative costs Source: Vattenfall
  11. 11. Market forces alone do not deliver cost effective savings – Supporting policies / incentives are urgently needed Actual energy consumption in single family houses in Denmark, relative to energy efficiency requirements in building codes Example Denmark: The result of energy certification of more than 200,000 buildings show that implementing building codes would still bring further improvements. Source: IEA
  12. 12. The EU aims for the 20/20/20 target by 2020: • 20 % CO2 reduction • 20 % share of renewables • 20 % energy efficiency improvements Key element is the Energy Performance of Buildings Directive (EPBD) Minimum energy performance standards for new and existing buildings that undergo major renovation Energy performance certificates for buildings Regular inspections of boilers and air-conditioning systems An integrated methodology to rate the energy performance in each country Road map - for each member state for low /zero energy houses by 2015 National incentive systems have to be established 40% of EU's energy is used in the building sector and accounts for 38% of its emissions with a savings potential of 55%
  13. 13. In the EU approximately 16,000 passive houses have been built Voluntary standard Voluntary standard Focus on building envelop Focus on building envelop PASSIVE HOUSE PASSIVE HOUSE regional, local and national regional, local and national initiative incentives ( (tax reductions, initiative incentives tax reductions, subsidies, special loans ) ) 75% reduction subsidies, special loans 75% reduction of energy use nearly all EU countries have aa of energy use nearly all EU countries have passive house initiative passive house initiative 5-10% higher costs 5-10% higher costs
  14. 14. Zero energy buildings require both increased efficiency standards and the utilization of renewables Some 60-70% of energy reduction will come from increased efficiency. Beyond that, use of renewables is what will tip the balance from a low- energy house to a zero-energy one. Source: IEA
  15. 15. Building sector is China's 4th largest industry, making up 8.9% GDP Governmental Goal in 11th -5 year plan (2005-2010) reduce energy consumption per unit of GDP by 20% reduce Building Energy Consumption by 50% improve energy efficiency of government institutions - save 10% energy per unit construction area and per capita reduce electricity consumption of appliances by 29 billion KWh increase industrial energy efficiency enhance efficiency monitoring and auditing Top 1000 Industrial Energy Conservation Programme
  16. 16. The construction sector accounts for 7% of India's GDP with a savings potential up to 40% ECBC - Energy Conservation Building Codes All buildings having a connected load of 500KW Mandatory for commercial buildings Applies for new construction only Includes all building components Energy efficiency programme in buildings - 500 public buildings Energy Audits Performance contracting ESCO promotion Additional innovative finance facilities
  17. 17. In the US, construction is the second largest industry accounting for 8% of GDP. The Obama campaign’s ambitious “New Energy for America” plan includes: Target of making America the most energy-efficient country in the world (currently ranked 22nd) Setting national building efficiency goals Make all new buildings carbon neutral or zero emissions by 2030 Improving new construction efficiency by 50%, existing building efficiency by 25% Make the U.S. federal government (the world’s largest single consumer of energy) a leader in green building Retrofits to achieve a 40% increase in efficiency of federal buildings within 5 years All new federal buildings zero emissions by 2025 Weatherize one million low-income homes annually More energy-efficient land use and development patterns
  18. 18. Factors hampering energy efficiency improvements in buildings: Sector related issues Many decision makers (millions of homeowners) Lack of financing mechanisms To much emphasis on construction costs and too little on ongoing running costs. Short occupancy (< 20 years) Split incentives (owner/renter, different budgets in public buildings) Lack of knowledge by owners, by constructors, advisers and banks Need for front-loaded efforts – the day after sale or refurbishment is too late! Inertia and lifestyle issues Energy use is invisible (“Only fix what you can touch ...”) Savings might indicate low status (“I can afford to be inefficient …”) Belief that all new buildings are efficient (“Building must be good, mandated by law ”) Need to address all barriers at the same time – policy package
  19. 19. REEEP – Renewable Energy and Energy Efficiency Partnership 1. REEEP is a global private public partnership launched by the UK government at the WSSD in Johannesburg in 2002 2. REEEP aims to accelerate the market development in both renewables and energy efficiency systems, with emphasis on transition and developing countries 3. REEEP acts as a grant organization for two types of projects that support market acceleration: 1. Policy/regulation formulation and improvement 2. Innovative finance mechanisms 4. REEEP is funded by 11 governments and has an annual budget of around € 5 million.
  20. 20. REEEP comprises 270 partners + 3000 friends of REEEP Currently more than 270 partners: • 42 Governments • International organizations, NGOs and companies
  21. 21. REEEP currently undertakes 52 projects in 29 countries 2 2 1 11 1 1 2 4 1 2 1 13 2 2 1 2 2 1 3 1 1 4 8 1 3 1 1 8 1
  22. 22. Financing energy-efficient street lighting in India Innovative financing mechanism in effort to reduce energy consumption (by 30- 40%) in the street lighting network in the cities of Madhya Pradesh Establishment of an ESCO to work with municipal entities Supervision of the project implementation and link to CDM Expansion of this project solution in Madhya Pradesh to a further 100 cities in India Project partner: Econoler International
  23. 23. Establishing an ESCO in Brazilian commercial and industrial sectors Reduce energy intensity of big energy industrial and commercial customers of PETROBAS by up to 10% Undertake a business analysis of customer consumption data and establish a feasibility of an ESCO operation Establish a independent ESCO and a business plan to capitalize the identified market (attracting equity and debt financing of approx €5 million) Establishing a model for major energy utilities to diversify into the sustainable sector (not core business up to now) Project partner: Econoler International
  24. 24. Establishing energy-efficient building codes in Russia and Kazakhstan Increased energy efficiency in new and renovated buildings has reduced CO2 emissions by 9.5 million t to date Development of improved building codes and compliance manuals Training of leading building officials on best practices in code enforcement as well as efficient building technologies Project partner: IMT
  25. 25. REEEP International Secretariat Vienna International Centre Room D1732 Vienna, Austria +43 1 26026 3677