IPCC Fourth Assessment Report: Climate Change 2007
Climate Change 2007: Working Group III: Mitigation of Climate Change

6.8 Policies to promote GHG mitigation in buildings

Preceding sections have demonstrated the high potential for reducing GHG emissions in buildings through cost-effective energy-efficiency measures and distributed (renewable) energy generation technologies. The previous section has demonstrated that even the cost-effective part of the potential is unlikely to be captured by markets alone, due to the high number of barriers. Although there is no quantitative or qualitative evidence in the literature, it is possible that barriers to the implementation of economically attractive GHG reduction measures are the most numerous and strongest in the building sector, especially in households. Since policies can reduce or eliminate barriers and associated transaction costs (Brown, 2001), special efforts targeted at removing the barriers in the buildings sector may be especially warranted for GHG mitigation efforts.

Sections describe a selection of the major instruments summarized in Table 6.6 that complement the more general discussion of Chapter 13, with a focus on policy tools specific to or specially applied to buildings. The rest of Table 6.6 is discussed in Section 6.8.5.

6.8.1 Policies and programmes aimed at building construction, retrofits, and installed equipment and systems Building codes

Building regulations originally addressed questions related to safety and the protection of occupants. Oil price shocks in the 1970s led most OECD countries to extend their regulations to include energy efficiency. Nineteen out of twenty OECD countries surveyed have such energy standards and regulations, although coverage varies among countries (OECD, 2003).

Building energy codes may be classified as follows: 1) Overall performance-based codes that require compliance with an annual energy consumption level or energy cost budget, calculated using a standard method. This type of code provides flexibility but requires well-trained professionals for implementation; 2) Prescriptive codes that set separate performance levels for major envelope and equipment components, such as minimum thermal resistance of walls, maximum window heat loss/gain and minimum boiler efficiency. There are also examples of codes addressing electricity demand. Several cantons in Switzerland specify maximum installed electric loads for lighting ventilation and cooling in new commercial buildings (SIA, 2006); and 3) A combination of an overall performance requirement plus some component performance requirements, such as wall insulation and maximum window area.

Energy codes are often considered to be an important driver for improved energy efficiency in new buildings. However, the implementation of these codes in practice needs to be well prepared and to be monitored and verified. Compliance can be difficult to enforce and varies among countries and localities (XENERGY, 2001; City of Fort Collins, 2002; OECD, 2003; Ürge-Vorsatz et al., 2003).

Prescriptive codes are often easier to enforce than performance-based codes (Australian Greenhouse Office, 2000; City of Fort Collins, 2002; Smith and McCullough, 2001). However, there is a clear trend in many countries towards performance-based codes that address the overall energy consumption of the buildings. This trend reflects the fact that performance-based policies allow optimization of integrated design and leave room for the creativity of designers and innovative technologies. However, successful implementation of performance-based codes requires education and training – of both building officials and inspectors – and demonstration projects showing that the building code can be achieved without much additional cost and without technical problems (Joosen, 2006). New software-based design and education tools, including continuous e-learning tools, are examples of tools that can provide good design techniques, continuous learning by professionals, easier inspection methods and virtual testing of new technologies for construction and building systems.

Public policies in many countries are also increasingly addressing energy efficiency in existing buildings. For instance, the EU Commission introduced the Directive on the Energy Performance of Buildings in 2003 (see Box 6.3), which standardized and strengthened building energy-efficiency requirements for all EU Member States. To date, most codes for existing buildings include requirements for minimum levels of performance of the components used to retrofit building elements or installations. In some countries, the codes may even prohibit the use of certain technologies – for example Sweden’s prohibition of direct electric resistance heating systems, which has led to the rapid introduction of heat pumps in the last five years. Finally, the EU Directive also mandated regular inspection and maintenance of boilers and space conditioning installations in existing buildings (see Box 6.3).

According to the OECD (2003), there is still much room for further upgrading building energy-efficiency codes throughout the OECD member countries. To remain effective, these codes have to be regularly upgraded as technologies improve and costs of energy-efficient features and equipment decline. Setting flexible (e.g., performance-based) codes can help keep compliance costs low and may provide more incentives for innovation.