ENERGY USE IN BUILDINS: FACTS, TRENDS & STRATEGIES EURIMA GENERAL MEETING Budapest, June, 2007

2. ENERGY USE IN BUILDINS: FACTS, TRENDS & STRATEGIES EURIMA GENERAL MEETING Budapest, June, 2007

3. EUROPEAN PROPERTY FEDERATION • Represents all aspects of property ownership and investment: • residential landlords and housing companies; • commercial property investment and development companies; • shopping centres; • institutional investors (banks, insurance, pension funds, etc.) • Members provide and manage buildings for the residential, services and industry tenants (own property assets valued at € 800 billion).

4. INTRODUCTION

5. INTRODUCTION

6. INTRODUCTION • “Sustainability” is a complex issue… But we are not alone: • USGBC (“United States Green Building Council”): • LEED (“Leadership in Energy and Environmental Design”) • BRE (“British Research Establishment”): • BREEAM (“British Research Establishment Environmental Assessment Method”) • iiSBE (“International Initiative for a Sustainable Built Environment”) • SB TOOL (“Sustainable Building Tool”) • “Toronto Green Development Standards” • Toronto City Council • …

7. INTRODUCTION • Certification implies compliance with: • requisites (base line environmental quality); • a percentage of the available credits (leadership environmental quality). • Different levels of environmental leadership are recognized (silver, gold, …), depending on the number of achieved credits.

8. INTRODUCTION • LEED: • 7 requisites;

9. INTRODUCTION • Substantial growth in the last years…

10. INTRODUCTION • LEED: 45 % requisites (!)25 % credits

11. INTRODUCTION • Independently of the methodology (LEED; BREEAM, etc.), energy is always a key issue in sustainability… • … which is not a surprise: • Stern Review, 2006: “The scientific evidence points to increasing risks of serious, irreversible impacts from climate change associated with business-as-usual paths for emissions”; • …

12. INTRODUCTION • BUT “Indoor Environmental Quality” must also be regarded as a “top level priority”… • …and special attention towards this subject is needed… Energy savings CANNOT be achieved reducing thermal comfort or indoor air quality (as it was the case in the 70’s, when oil price crisis leads to a reduction in outdoor ventilation rates and, consequently, to “Sick Building Syndrome” cases).

13. INTRODUCTION

14. INTRODUCTION Fonte: “The effects of Outdoor Air Supply Rate on Perceived Air Quality and SBS Symptoms”, Wargocki, Fanger et al, Indoor Air, FiSIAQ, 2000

15. INTRODUCTION • Directive 2002/91/EC on energy performance of buildings, Article 1 (Objective): • “… improvement of energy performance… as well as indoor climate requirements…”; • 2004: EN 13779 (“Performance Requirements for Ventilation and Room-Conditioning Systems”)

16. INTRODUCTION Energy

17. ENERGY USE IN BUILDINS: FACTS, TRENDS & STRATEGIES EURIMA GENERAL MEETING Budapest, June, 2007

18. World, 2004 EU25, 2004 Fossil and nuclear: 87% Fossil and nuclear: 94% FACTS • TPES based on non-renewable / high impact energy sources: Fonte: “World Energy Outlook” IEA 2006

19. FACTS • EU 25, 2004: 700.000 ton of oil in the oceanes (discharges and splits) and 45.000 ton of nuclear waste (1990 – 2005) Fonte: “Energy and Environment in the European Union”, EEA, 2006

20. FACTS • EU 25, 2004 (TPES): Source: “World Energy Outlook” IEA 2006

21. ENERGY USE IN BUILDINS: FACTS,TRENDS & STRATEGIES EURIMA GENERAL MEETING Budapest, June, 2007

22. TRENDS • Energy use reduction as a “top priority” (legislation, energy costs, investors CSR policies, general public opinion, etc.): • COM(2006)545 final: “Action Plan for Energy Efficiency: realising the potential”, 19.10.2006: • “… provide EU citizens with the globally most energy-efficient infrastructure, buildings, appliances, processes, transport means and energy systems…”

23. TRENDS • COM(2006)545 final: “Action Plan for Energy Efficiency: realising the potential”, 19.10.2006: • Appliance and equipment labeling and minimum energy performance standards; • Building performance requirements: • Based on Directive 2002/91/CE of 16 de December 2002 on energy performance of buildings; • Power generation and distribution; • Fuel efficiency of cars; • Facilitating appropriate financing of energy efficiency investments; • Spurring energy efficiency in the new members; • Coherent taxation (e.g., Portugal.: VAT for electricity = 5%; VAT thermal insulation = 21%) • Raising energy efficiency awareness; • Energy efficiency in built-up areas; • Foster energy efficiency worldwide.

24. TRENDS • BAU “versus” COM(2006)545

25. TRENDS • BAU “versus” Alternative Policy, EU25 (IEA, 2006): Fonte: “World Energy Outlook, 2006”, IEA, 2006

26. TRENDS • “Compared with investment in supply, end-use efficiency improvements…requires a much great number of individual decisions…” Fonte: “Financing Energy Efficiency: lessons recent experiences”, World Bank, 2006

27. ENERGY USE IN BUILDINS: FACTS,TRENDS & STRATEGIES EURIMA GENERAL MEETING Budapest, June, 2007

28. STRATEGIES • In the specific case of the building industry, it also necessary to understand: • that “who plays is who decides” (investors and promoters NOT design teams); • that typical business models do not encourage investments in energy efficiency… • Speculative business models: promoters will not be users… investments in energy saving equipments / materials / … do not result in savings; • Non-speculative business models: promoters will be users (the same companies but not always the same actors) but investments are NOW and REAL while EVENTUAL savings will happen in the FUTURE…

29. STRATEGIES • “Bussiness Models”: • The typical argument “invest now and save latter” do not make any business sense ! What is really necessary is to create: • conditions that allow us to say “invest now and you will sell first” or “invest now and you will sell more expensive”… (in other words it is necessary that market values energy efficiency); • effective incentives (e.g., land use bonus, faster administrative process, etc. – the role of local authorities); • well designed and well enforced legislation.

30. STRATEGIES • Project Teams (architects, engineers): • they follow promoters instructions (which will include, if the previous conditions are fulfilled, energy performance targets…) ; • “know-how”. • BUT • they are of utmost importance because they are responsible for choosing the most adequate technical solutions to achieve promoters targets (without entailing excessive extra cost).

31. STRATEGIES • The list of available technical solutions is almost endless… • Architecture: orientation, fenestration, thermal insulation, … • Energy-use systems: HVAC, lighting, electric motors, … • Energy-supply systems: solar thermal, PV, biomass, … • … but investment funds are always scarce !

32. STRATEGIES • Strategy: • define the base-line solutions (those that leads to legal compliance but no more); • identify leadership solutions (those that leads to a better performance); • quantify costs and savings associated with each leadership solution (e.g., kg CO2 / €) ; • classify each leadership solution according to its ratio between CO2 emissions savings and investment [CO2/€]; • implement the leadership measures, starting with those with the highest CO2/€ ratio until the limit of available capital.

33. STRATEGIES “Strategic Energy Management Hierarchy: Before considering the incorporation of renewable energy in a building, it is important to ensure that all reasonable cost-effective energy efficiency measures have been incorporated… Once energy efficiency measures have been exhausted, then renewable energy technologies should be considered.”

34. STRATEGIES

35. ENERGY USE IN BUILDINS: FACTS, TRENDS &STRATEGIES EURIMA GENERAL MEETING Budapest, June, 2007

36. CONCLUSIONS • The ambition of constructing energy-efficient buildings must be complemented by the ambition of constructing “sustainable” buildings.

37. CONCLUSIONS • But energy efficiency, together with indoor environmental quality, is key issue of building sustainability.

38. CONCLUSIONS • In the building industry (as well as in the majority of the business activities) who plays is who decides (investors and promoters); • It is thus necessary to create conditions to make from these players the first interested in energy efficiency: • market must value energy efficiency; • effective incentives (e.g., land use bonus, faster administrative process, etc.); • well designed and well enforced legislation.

39. CONCLUSIONS • Strategy for energy efficient buildings: • commanded by the promoters; • included in a broader environmental policy; • but, to be effective, it must be supported by project teams with adequate skills and know-how… they must be able to choose cost-effective solutions to achieve promoters energy performance objectives !

40. FUTURE ?

41. FUTURE ? • “Zero Energy Buildings” “Pearl River Tower”, Guangzhou, China(design phase)

42. FUTURE ? • “Zero Energy Buildings”