eurima may 31, 2007 budapest wbcsd project: energy efficiency in buildings

World Business Council for

Sustainable Development

EURIMA

May 31, 2007Budapest

WBCSD Project:Energy Efficiency in Buildings

2World Business Council for


Talking points

A few words about WBCSD Energy and Climate change Building Project - EEB Questions



WBCSD

Coalition of 190 leading companies 112 headquartered in EU and G8 countries

Market capitalization: USD 6 trillion

Regional network partners in 60 countries



WBCSD Member Companies

Who are we?



Geographic Overview of WBCSD Members

Europe-EU

North America (incl. Mexico)

Asia (Japan & Korea)

Europe - Other

Latin America

Central & Eastern Europe

Oceania

Asia - Other

Africa

Middle East

49

65

32



Providing a business vision on Sustainable Development(SD)An antennae for emerging issues and trends

Advocating the business case for SDInfluencing the debate and public policy

Bringing a collective business voice“We can punch above our weight”

Providing a platform for leading companies and senior level decision makers

Delivers learning by doing and by sharing

Why do companies join?



Talking points

A few words about WBCSD Energy and Climate change Building Project - EEB Questions & discussion



Climate change

“It’s show time for climate change” Public opinion is at “a tipping point” A growing sense of urgency in society ….but no strong actions…..



A carbon constrained world

September 2006



The Context

Challenges We do need energy….more energy..much more… Strong growth in demand and investments

• Developing countries : new capacity• OECD: replacements

Climate Change messages:• Don’t go over 2Co global warming• Stay within the range of 450 – 550 ppm carbon

concentration by 2050• “Cheaper to act now than wait” (Stern)

Next 10 years of actions and investments crucial



High and low carbon pathways

0

2

4

6

8

10

12

14

16

2000 2010 2020 2040 2050

Glo

ba

l Ca

rbo

n E

mis

sio

ns,

GT

2030

WRE 450 (IPCC)

WRE 550 (IPCC)

WRE 1000 (IPCC)

Theoretical carbon emissions profiles published in IPCC 3rd Assessment Report

Theoretical carbon emissions profiles published in IPCC 3rd Assessment Report



Oil Biomass Gas Coal Nuclear Renewables

Primary Energy

Liquids

Direct combustionIndustry and

Manufacturing

Mobility

Final Energy

Consumer Choices

Energy

En

erg

y

En

erg

y

Buildings

Power Generation

« Five ” in our energy system



A further shift to natural gas Nuclear

power

Renewables Bio-products Carbon capture and storage

Mass transportation

BuildingsLow energy appliances

Doing things differently

Energy conservation and efficiencyEnergy conservation and efficiency

Emission reductionEmission reduction

Road transport

Options for change – technological and behavioural



Can all that change tomorrow??

Many advocate that a much more rapid change in our energy infrastructure is the only solution to the threat of climate change. However:

Major transitions at the global level will take time to implement

The speed with which new technologies diffuse depends on many factors.



Size and lifetime matter !!

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 ++

The rate of technological change is closely related to the lifetime of the relevant capital stock and equipment

Nuclear 30 – 60 years

Motor vehicles 12 – 20 years

Coal power 45+ years

Hydro 75+ years

Gas turbines 25+ years

Buildings 45+++ years



0

200

400

600

800

1000

2005 2050

Target Mobility - FuelsVehicle Efficiency Mobility ChoiceRenewable Power CCSBuildings IndustryDomestic Other Actions

Opportunity starts at the national / sectoral level

A. Opportunity Wedges (National)(Developed Country Example)

B. National/Sectoral Goals & Targets

Efficiency BuildingsIndustry xx % p.a. Domestic through to 20xx

Power Renewables xx MW p.a. by 20xxGeneration CCS xx tonnes CO2 p.a.

Mobility Bio-fuels xx litres p.a. by 20xxEfficiency xx mpg by 20xxChoice Hybrid / Diesel uptake

Mass transit

C. National Policies

Buildings – adopt new country building standards, design awareness

Industry – Sectoral agreements, emissions trading, technology standards

Domestic – carbon labeling, increased product standards (e.g. standby energy)

Renewable Energy – renewables targets.

CCS – funding for infrastructure, tax cuts on capital investments, price signals for carbon via emissions trading

Biofuels – targets, support for manufacturing, CO2 labeling

Vehicle Efficiency - support technology, incentives, sectoral agreements

Mobility Choice - consumer incentives, promote public/private partnerships for transport networks

National CO2 trajectory

CO

2 E

mis

sio

ns,

MT

pe

r a

nn

um



We need a global framework…

Two key intergovernmental processes

Formal climate negotiations / UNFCCC• Stalled at present

G8 + 5 Gleneagles Plan of Action• Can help bring the UNFCCC negotiations “back to

life”



The Complimentary Roles of Business and Governments

Two key questions from governments on business and climate change

• How far can business go on its own, based on the normal operations and investments?

• How can governments facilitate and enhance further actions by business?

Not good enough answers provided by Business



A new direction is needed



Talking points

A few words about WBCSD Energy and Climate change Building Project - EEB Questions & discussion



Project Vision

A world where buildings consume zero net energyA world where buildings consume zero net energy



Our “argument”

climate change is urgent

there are barriers preventing progress

building energy use can be cut dramatically now

there are business opportunities

buildings can and should be zero net energy

these barriers can be overcome



CONTRIBUTING ORGANIZATIONS

Co-Chairs

Lafarge

UTC

Core

DuPont

EDF

Philips

TEPCO

Sonae Sierra

Core

CEMEX

GDF

Kansai

Sponsoring

Arcelor

BP

ITT

RioTinto

Approached: Arup, GE, IKEA, JCI, Nexity, OwensCorning, WalMart, Allianz, Shell, Skanska, Swiss Re …

Institutions: Int’l Energy Agency, UN Environment Program, Lawrence Berkeley National Labs, Int’l Institute for Energy Efficiency Economy, PassivHaus, Renewable Energy and Energy Efficiency Partnership, China MOC…

Secretariat

WBCSD



Detailed Work Plan

2006 2007 2008

Formally Announce

Project (Beijing)

2009

Final (Action Plan)

Report

Setting Direction Report

Facts & Trends Report

Assurance Group

Industry Response

Report

CEO Gate CEO Gate CEO Gate

Detail work plan and commitment in place

Opportunity Design/Develop Validation

Assurance Group Assurance Group

Local EEB with the Regional Network



BUILDING SECTOR, BY REGION

Buildings' Floor Space, 2003

0

5

10

15

20

25

30

35

40

China EU-15 Japan US

Flo

or

Sp

ac

e (

bill

ion

m2 )

Commercial

Residential

Buildings' Floor Space per Capita, 2003

0

10

2030

40

50

6070

80

90

China EU-15 Japan US

Flo

or

Sp

ac

e (

m2 )

Commercial

Residential

Total area

Area per capita

Source: WBCSD EEB Phase I Facts & Trends Equipment Sector Report



ENERGY CONSUMPTION, SOURCES

Buildings' Site Energy by Fuel, 2003

0%

20%

40%

60%

80%

100%

Brazil China India EU-15 Japan US

heat

electricity

biomass

natural gas

petroleum

coal

Buildings' Primary Energy Consumption, 2003

0

2000

4000

6000

8000

10000

12000


Pri

ma

ry A

EC

(T

Wh

)

Commercial

Residential

Buildings' Site Energy Consumption, 2003

0

2000

4000

6000

8000

10000

12000


Sit

e A

EC

(T

Wh

)

Commercial

Residential

Source: WBCSD EEB Phase I Facts & Trends Equipment Sector Report

Commercial Buildings' Site Energy by Fuel

0%

20%

40%

60%

80%

100%


Sit

e A

EC

(%

)

heat

electricity

biomass

natural gas

petroleum

coal



CONSUMPTION FORECAST

0

1

2

3

4

5

6

7

8

9

'02 '25 '02 '25 '02 '25 '02 '25 '02 '25 '02 '25

CommercialResidential

TWh

USA Western Europe

FSU/ Eastern Europe

China Japan Other Emerging

Residential67%

Commercial33%

200221.3 TWh

Worldwide Building Energy Consumption

Building Energy Consumption by Region

Source: International Energy Outlook, EIA, 2005

Source: International Energy Outlook, EIA, 2005Note: Canada, Mexico, Australia and New Zealand not represented in

the chart; they add up to 1.2 TWh in 2002

51%

25%

14%

-4%

32%

30%114%

120%4%

0%

130%

98%



Energy Intensity (per unit area) vs. Total Energy UsageUS Commercial Buildings

Education

Food Sales

Food Service

Public Order and Safety

Religious Worship

Service

Warehouse and Storage

Other

Vacant

Health Care

Lodging Mercantile (incl mall)

OfficePublic Assembly

0

150

300

450

600

750

900

0 50 100 150 200 250 300 350

Total Usage, TW-hr

Are

a In

tens

ity, k

W-h

r/m

2

DEMAND BY SUBMARKET

Source: Energy Information Agency, 2003 Commercial Buildings Energy Consumption Survey

Incr

easi

ng I

nten

sity

Increasing Consumption



ESTABLISH BASELINE FACTS

BrazilChinaIndiaJapanEuropeUS

Availability

Consistency

StatisticsCountArea

Population

No. FloorsConstruction

Window EfficiencyWall Efficiency

HeatingCooling

VentilationWater Heat

LightingCooking

RefrigerationOffice Equip

ElectricityNat GasFuel Oil

KeroseneLPG

DistrictBiomass

SolarWind

Fuel CellCHP

Short TermLong TermBldg SizeBldg Count

Growth Rates Carbon OutputSuppy Type &

Efficiency

Residential

Commercial

Industrial

CharacterizationGross Demand &

IntensityEnvelope

Demand Type & Efficiency


Efficiency

Residential

Commercial

Industrial


IntensityEnvelope



Efficiency

Residential

Commercial

Industrial


IntensityEnvelope



Efficiency

Residential

Commercial

Industrial


IntensityEnvelope



Efficiency

Residential

Commercial

Industrial


IntensityEnvelope


Tot DemandAreal Intensity

Per Capita IntensityGDP Intensity

TotalPer Bldg

Per Capita


Efficiency

Residential

Commercial

Submarkets


IntensityEnvelope

Demand Type &

EfficiencyGrowth Rates Carbon Output

Suppy Type &

Efficiency

Residential

Commercial

Submarkets


IntensityEnvelope

Demand Type &

Efficiency

Detail Matrix: Work in Progress



Energy and people

What people think they spend energy (Germany)Think Reality

Car 14 % 31 %

Hot water 18 % 8 %

Heating 25 % 53 %

El.Equip 39 % 8 %

Don’t know 3 % n.a

Source: PassivHaus



Objectives for Market Research study

To measure, in different regions of the world – specifically Japan, China, India, Brazil, the US, and EU (Spain, France and Germany):

• The perception of sustainable buildings

• The level of understanding and level of maturity of this new concept

• The readiness to adopt sustainable buildings and the constraints faced by investors, architects and contractors



Households Non-professional landlords; domestic owners

We used qualitative then quantitative interviews for different audiences

• 45 interviews• In-depth face-to-face and telephone interviews

• 150-200 interviews per market (total = 1423)• 15 minute telephone questionnaire

Excluded

Corporate property managers

Real estate agents

Professional landlords

Architects and engineers

Specifiers and developers

Builders and contractors

Corporate Owners and Tenants

Agents and Landlords

Specifiers and Developers

Policy makers

Politicians Regulators

Regulators

Investment bank construction-industry analysts

Investment bank real estate financiers

Property investment companies

Architects Journalists NGOs Academics

Finance community

Opinion leaders

Quantitative researchQualitative research

Focus of this presentationQualitative research helped us to optimise the quantitative research design



EXPERIENCE BY COUNTRY

3%5%13%

5%13%64%

10%28%79%

9%27%82%

16%43%83%

9%28%87%

45%67%98%

8%27%83%

50%

39%

34%

35%

36%

33%

67%

30%

50%

39%

34%

35%

36%

33%

67%

30%

40%

21%

36%

33%

51%

32%

69%

32%

40%

21%

36%

33%

51%

32%

69%

32%

Been involvedConsideredAware

Japan

India

China

Brazil

USA

Spain

Germany

France

Source: WBCSD EEB Market Research, 2007



EXPERIENCE BY SECTOR

Source: WBCSD EEB Market Research, 2007



When asked about their role in driving change, very few of our decision-makers see their role as leading the move to sustainable building

All respondents

Q16. What do you see as the role of your company in the adoption of sustainable building practices

Percentage of respondents

Specifiers/ developers

Agents/ owners/ landlords

Corporate tenants

0% 25% 50%

Driving/ leading adoption

Adopting practices incrementally, as soon

they are tried and tested

Adopting practices incrementally, as they

become industry standard

Only adopting practices as clients require it

Only adopting practices as regulations require it

0% 25% 50% 0% 25% 50% 0% 25% 50%

N/A

Source: WBCSD EEB Quantitative Research



Some of our findings

Low awareness of environmental impact & cost of green

Low leadership actions, sector is complex & fragmented

Know-how and experience is lacking

Holistic approach is key

Lack of financial instruments

Energy efficiency is not an investment criteria

Behavior and cultural lifestyles are key factors

As it relates to energy efficiency and buildings …

Market Perceptions

Business Levers



Cross sector factors for industry transformation

Finance, Design,

Ops

Finance, Design,

Ops

MaterialsMaterials

EquipmentEquipment

EnergyEnergy

FINANCINGINTEGRATION

& INNOVATION

POLICY &

REGULATION

BEHAVIORS



Project Vision

A world where buildings consume zero net energyA world where buildings consume zero net energy



EEB contacts

WWW.wbcsd.org/web/eeb

WWW.eeb-blog.org

World Business Council for


Staff meeting EEB project

April 17, 2007Geneva

WBCSD Project:Energy Efficiency in Buildings

eurima may 31, 2007 budapest wbcsd project: energy efficiency in buildings

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