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In order to limit global warming and fulfill their contributions to the Paris agreement, both Germany and Japan have set targets for climate neutrality towards the middle of the century. Reaching these goals will imply transformation of all sectors of society to avoid all fossil greenhouse gas emissions, heavy industry not the least. The focus of this study is the transformation of the petrochemical industry. This sector can become climate neutral but cannot be "decarbonized", as carbon is integral to the chemical structures of the products like polymers and solvents. Reaching climate neutrality thus means that the whole lifecycle of the petrochemical products has to be regarded. Another specific challenge is today's synergetic relation of this industry to fossil transport fuel production, which cannot be maintained in a climate neutral world.
The two countries interestingly share a similar industrial structure overall, and the chemical and petrochemical industry is one of the major industries in both countries. The countries' respective chemical industries are the third and fourth largest in the world in terms of sales, but at the same time, these industries represent just over 5% of the respective countries' greenhouse gas emissions. However, these scope 1 emissions of the chemical industry itself are far less relevant than the end-of-life emissions of their products, which belong to scope 3 and are thus not counted under the chemical industry in the country greenhouse gas balances. To mediate these emissions, there is a need to set the direction, draw out paths and investigate possible alternatives for how the petrochemical industry can be become climate neutral. In this report, the existing scenario analyses, energy strategies and roadmaps dealing with this issue in the two countries are compared, as well as the current state of their petrochemical industries. We highlight similarities, differences and identify possible areas of cooperation and exchange in order to find robust paths forward for the transformation of the petrochemical industries.
Established in 2016, the German-Japanese Energy Transition Council (GJETC) strives to promote bilateral cooperation between Germany and Japan on energy transition. Among other studies and topical papers, an output paper in 2020 (Rauschen et al., 2020) already compared the energy efficiency in buildings in both countries with a particular focus on heating and cooling. One important finding of this output paper was that further efforts in the building sector are needed to improve the energy efficiency of buildings in Germany and Japan. Following the more ambitious climate protection targets in both countries, this study seeks to analyze the German and Japanese policies put in place to accelerate the decarbonization of the building sector. The decarbonization of the vast number of buildings that both Japan and Germany are facing will be a major contribution to achieving the GHG reduction targets of both countries and should continue to be discussed among experts and developed into a discussion among policy makers.
This report examines and compares the characteristics of the building stock in both countries, as well as existing policies and new strategies and policies that are planned or discussed to achieve energy conservation and decarbonization of buildings. The current shape of buildings, especially houses, is greatly influenced by the land area of the country corresponding to the available space for buildings, the natural environment surrounding the country, the natural resources available, and the lifestyle and cultural ideas that have been passed down and taken root over time. Therefore, it might be difficult to compare them and the corresponding strategies and policies with the same yardstick, so we also discuss common or deviant situations. Through this joint research, we aim to find each other's advantages and challenges and to develop useful and concrete policy recommendations that will contribute to decarbonization policies in both countries.
Strengthening global climate governance and international cooperation for energy‐efficient buildings
(2023)
Buildings constitute one of the main GHG emitting sectors, and energy efficiency is a key lever to reduce emissions in the sector. Global climate policy has so far mostly focused on economy-wide emissions. However, emission reduction actions are ultimately sectoral, and opportunities and barriers to achieving emission reductions vary strongly among sectors. This article therefore seeks to analyse to what extent more targeted global governance may help to leverage mitigation enablers and overcome barriers to energy efficiency in buildings. To this end, the article first synthesises existing literature on mitigation enablers and barriers as well as existing literature on how global governance may help address these barriers ("governance potential"). On this basis, the article analyses to what extent this governance potential has already been activated by existing activities of international institutions. Finally, the article discusses how identified governance gaps could be closed. The analysis finds that despite the local characteristics of the sector, global governance has a number of levers at its disposal that could be used to promote emission reductions via energy efficiency. In practice, however, lacking attention to energy efficiency in buildings at national level is mirrored at the international level. Recently, though, a number of coalitions demanding stronger action have emerged. Such frontrunners could work through like-minded coalitions and at the same time try to improve conditions for cooperation in the climate regime and other existing institutions.
Studies show that people can tolerate elevated temperatures in the presence of appreciable air movement (e.g., from using ceiling fans). This minimises the use of air-conditioners and extends their set-point temperature (Tset), resulting in energy savings in space cooling. However, there is little empirical evidence on the energy savings from using ceiling fans with Room Air-Conditioners (RACs). To address this gap, we analysed the energy performance of RACs with both fixed-speed compressors and inverter technology at different set-point temperatures and ceiling fan speed settings in 15 residential Mixed-Mode Buildings (MMBs) in India. Thermal comfort conditions (as predicted by the Indian Model for Adaptive Comfort-Residential (IMAC-R)) with minimum energy consumption were maintained at a set-point temperature (𝑇set) of 28 and 30 C and a fan speed setting of one. Compared with a Tset of 24 °C, a 𝑇set of 28 and 30 °C resulted in energy savings of 44 and 67%, respectively. With the use of RACs, a configuration with a minimum fan speed was satisfactory for an optimal use of energy and for maintaining the conditions of thermal comfort. In addition, RACs with inverter technology used 34-68% less energy than fixed-speed compressors. With the rising use of RACs, particularly in tropical regions, the study's outcomes offer a significant potential for reducing space-cooling energy consumption and the resultant greenhouse gas (GHG) emissions.
The original objectives for introducing Energy Performance Certificates (EPCs) were 1) to make energy performance transparent in the building market, as a measure of energy costs of using a building that a potential buyer or tenant would be interested in; and 2) to encourage energy efficiency renovation. However, the current implementation of EPC schemes in the Member States still shows significant challenges in achieving these two objectives. The recast of the EU Directive on the Overall Energy Performance of Buildings (EPBD) provides a chance to enhance both the usefulness and quality of EPCs and the EPC schemes overall.
This document aims to inform both the debate on the recast of the EPBD and the enhancement of national EPC schemes in EU Member States. It presents the draft policy recommendations of the Horizon 2020 QualDeEPC project for making the EPBD and the national schemes more effective, particularly for deep renovation, and enhance their quality overall. The policy recommendations particularly target the link between EPCs and deep (energy) renovation1, while increasing the levels of ambition and convergence across the EU in terms of building renovation. Deep (energy) renovation is crucial for mitigating climate change and for energy security. The EPBD and all of its articles, as well as national EPC schemes, should aim to make deep (energy) renovation the default. This objective would be embedded and ensured in EPC schemes, if the policy recommendations provided in this document were adopted and implemented.
The QualDeEPC project is aiming to both improve quality and cross-EU convergence of Energy Performance Certificate schemes, and the link between EPCs and deep renovation: High-quality Energy Performance Assessment and Certification in Europe Accelerating Deep Energy Renovation. The objective of the project is to improve the practical implementation of the assessment, issuance, design, and use of EPCs as well as their renovation recommendations, in the participating countries and beyond.
This report serves as a compilation of the project's proposal for an enhanced and converging EPC assessment and certification scheme. It aims to provide a detailed description on the set of practical concepts, policy proposals, and tools for an enhanced EPC scheme towards deep renovation, developed by the QualDeEPC project. The project's substantial proposals both on EU and national level are presented in a comprehensive and rational way, guiding the relevant stakeholders, in particular the policy makers and competed bodies, on which steps need to be followed so as the proposals to be adapted and how the specific values can be determined in MSs. Furthermore, this report includes the project's proposal for defining "Deep Energy Renovation" based on a modified nZEB-based approach.
The project's priorities A) to G) addressed are presented in the following order in this document, reflecting the importance of the enhanced EPC template form and the training of EPC assessors in such schemes:
A) Improving the recommendations for renovation, which are provided on the EPCs, towards deep energy renovation;
E) High user-friendliness of the EPC, by way of an enhanced EPC template form, including an introduction of the proposed "Energy Rating" indicator;
D) Regular mandatory EPC assessor training or examination on assessment and renovation recommendations, required for certification/accreditation and registry;
B) Online tool for comparing EPC recommendations to deep energy renovation recommendations;
C) Creating Deep Renovation Network Platforms (DRNPs);
F) & G) Voluntary/mandatory advertising guidelines for EPCs and Improving compliance with the mandatory use of EPCs in real estate advertisement.
D2.1 report on local EPC situation and cross-country comparison matrix : QualDeEPC H2020 project
(2020)
Considering that 40% of the European Union's energy consumption can be traced back to its buildings, it is essential to improve their energy efficiency in order to achieve the EU's energy efficiency targets. Both the rate of energy renovation and its depth, i.e. the amount of energy savings during a renovation, need to be improved. Energy Performance Certificates (EPC), regulated by the EU's Energy Performance of Buildings Directive (EPBD), are an important instrument to enhance the market uptake of energy-efficient new buildings and the energy-efficient renovation of existing buildings.
Against this background, the Horizon2020 funded project QualDeEPC will work on EU-wide convergence of the building assessment and the issuance, design, and use of quality-enhanced EPCs as well as their recommendations for building renovation. The aim is to make these recommendations coherent with deep energy renovation towards a nearly-zero energy building stock by 2050.
The first part of the QualDeEPC project (work package 2) aims to identify the priorities for elements of EPC schemes that show a need to be improved, and for which the project will investigate further and propose how the elements can be improved. The first step in identifying these priorities is taking stock of the existing EPC schemes. Based on the input from all national consortium partners and other sources, the Wuppertal Institute prepared this detailed overview of the country-specific EPC assessment and certification procedures and their links to other policies and programmes, existing initiatives, and projects. The analysis was based on a list of almost 50 potential options for enhancing the existing EPC schemes.
The aim of this deliverable is to present this stock-taking by a detailed analysis on which of the potential enhanced EPC elements are already implemented in which form in which country, covering all 28 countries that were EU member states until 31 January 2020. All partners conducted bilateral interviews with the major actors in the EPC procedures, including executive bodies on EPC at regional and/or national level. For countries not represented in the Consortium, Wuppertal Institut and EAP conducted specific literature research, e.g. from the Concerted Action EPBD, and aimed to obtain contributions from other member states. The information collected allows a detailed presentation on the elements implemented as well as a cross-country comparison matrix (see Annex I) in this report, which outlines the current EPC practices across the EU regarding the elements of a good practice scheme or innovative improvement options, their comparability, compliance with EU legislation, and to which extent they differ or converge.
The results show, once more, the high diversity in EPC schemes across the EU. They also provide useful information in at least two directions: 1) which improvement options are not yet implemented at all or in sufficient quality in most QualDeEPC partner countries as well as other EU member states, and could therefore be interesting candidates for the further work of the QualDeEPC project in development, testing, discussion, and possibly implementation of elements for enhanced and converging EPC schemes; and 2) which countries, within or beyond the QualDeEPC project, offer good practice examples for the implementation of these options that could serve to guide the development and implementation in other countries. This deliverable will thus serve as a basis for the upcoming tasks to develop priorities and actual proposals for improvement of EPC schemes.
To achieve the EU's energy efficiency targets, both the rate of building energy renovation and its depth, i.e., the amount of energy savings post renovation need to be improved. Energy Performance Certificates (EPCs) are key to make energy efficiency measures transparent for the building market and to promote the energy efficiency of buildings through renovation. The revision of the Energy Performance of Buildings Directive (EPBD) is seen as a pre-condition to meet the Renovation Wave objectives and to reach a highly energy efficient and decarbonized building stock by 2050. One focus of the current revision of the EPBD is therefore the improvement of EPCs. QualDeEPC - High-quality Energy Performance Assessment and Certification in Europe Accelerating Deep Energy Renovation, funded under the EU's Horizon 2020 programme, is a project that aims to improve EPCs. Following an EU-wide review of existing EPC schemes, and extensive stakeholder discussions in the seven partner countries, QualDeEPC found that EPCs and EPC schemes need to enhance particularly in the following three ways:
1. Establish a close link between EPCs and deep energy renovation
2. Improve the quality of EPC schemes, i.e., both the EPCs and their data, and the processes of assessment, certification, verification
3. Improve cross-EU convergence of EPC schemes.
Energy Efficiency First (EEF) is an established principle for European Union (EU) energy policy design. It highlights the exploitation of demand-side resources and prioritizes cost-effective options from the demand-side over other options from a societal cost-benefit perspective. However, the involvement of multiple decision-makers makes it difficult to implement. Therefore, we propose a flexible decision-tree framework for applying the EEF principle based on a review of relevant areas and examples. In summary, this paper contributes to applying the EEF principle by defining and distinguishing different types of cases - (1) policy-making, and (2) system planning and investment - identifying the most common elements, and proposing a decision-tree framework that can be flexibly constructed based on the elements for different cases. Finally, we exemplify the application of this framework with two example cases: (1) planning for demand-response in the power sector, and (2) planning for a district heating system.
In Germany, the number of renewable energy prosumers has increased rapidly since 2000. However, the development of prosumers has faced and will continue to face various economic, social, and technological challenges, which have triggered the emergence of a number of innovative business models (BM). This paper enriches the empirical basis for prosumer-oriented BMs by investigating two BM innovations in Germany (P2P electricity trading and aggregation of small-size prosumers) drawing on business model and socio-technical transition theories. A mix of qualitative data collection methods, including document analysis and semi-structured expert interviews, was applied. We found that while both BMs can potentially address the challenges associated with renewable energy prosumer development in Germany, small-scale prosumers’ participation in both BMs has been limited so far. We identified various internal and external drivers and barriers for scaling up these BMs for prosumer development in Germany. Despite these barriers, both aggregation and centralized P2P targeting prosumers may potentially be also taken up by incumbent market actors such as utilities. Decentralized P2P on the other hand still faces significant internal and external barriers for upscaling. Based on the analysis, the paper provides policy recommendations with respect to the identified drivers and barriers. From a theoretical perspective, our findings provide further evidence to challenge the dichotomous understanding of niche actors and incumbents, the latter of which are often theorized to be resistant to radical innovations.
An important instrument to enhance the market uptake of energy-efficient new buildings and the energy-efficient renovation of existing buildings in the European Union (EU) are the Energy Performance Certificates (EPC). However, their implementation and use has varied between EU Member States. The European Commission has therefore provided funding to a number of Horizon2020 projects to develop next-generation EPC schemes.
One of these is the QualDeEPC project, aiming to both improve quality and cross-EU convergence of EPC schemes, and particularly the link between EPCs and deep renovation. The objective of the project is to improve the practical implementation of the assessment, issuance, design, and use of EPCs as well as their renovation recommendations, in the participating countries and beyond.
This paper presents the policy proposals and concepts for tools that the QualDeEPC project has developed as priorities for enhanced EPC schemes:
- Improving the recommendations for renovation, which are provided on the EPCs, towards deep energy renovation
- An online tool for comparing EPC recommendations to deep energy renovation recommendations
- Creating Deep Renovation Network Platforms (One-stop Shops plus networking and joint communication of supply-side actors)
- Regular mandatory EPC assessor training (on assessment and renovation recommendations) required for certification/accreditation and registry
- Achieving a high user-friendliness of the EPC
- Voluntary/mandatory advertising guidelines for EPCs
- Improving compliance with the mandatory use of EPCs in real estate advertisements
The paper will focus on the aspects related to improving the impact of EPCs for stimulating deep renovation. It will also present lessons learnt from the discussion with stakeholders at national and European workshops and from the testing of the proposals and tools in around 100 buildings, as well as from the first steps of their country-specific adaptation.
The challenges and also potentials of the energy transition are tremendous in Germany, as well as in Japan. Sometimes, structures of the old energy world need "creative destruction" to clear the way for innovations for a decarbonized, low-risk energy system. In these times of disruptive changes, a constructive and sometimes controversial dialog within leading industrial nation as Japan and Germany over the energy transition is even more important. The German-Japanese Energy Transition Council (GJETC) released a summarizing report for the first project phase 2016-2018. It includes jointly formulated recommendations for politics as well as a controversial dialogue part.
The Council jointly states and recommends that:
Ambitious long-term targets and strategies for a low-carbon energy system must be defined and ambitiously implemented; Germany and Japan as high technology countries need to take the leadership.
Both countries will have to restructure their energy systems substantially until 2050 while maintaining their competitiveness and securing energy supply.
Highest priority is given to the forced implementation of efficiency technologies and renewable energies, despite different views on nuclear energy.
In both countries all relevant stakeholders - but above all the decision-makers on all levels of energy policy - need to increase their efforts for a successful implementation of the energy transition.
Design of the electricity market needs more incentives for flexibility options and for the extensive expansion of variable power generation, alongside with strategies for cost reduction for electricity from photovoltaic and wind energy.
The implementation gap of the energy efficiency needs to be closed by an innovative energy policy package to promote the principle of "Energy Efficiency First".
Synergies and co-benefits of an enhanced energy and resource efficiency policy need to be realized.
Co-existence of central infrastructure and the growing diversity of the activities for decentralization (citizens funding, energy cooperatives, establishment of public utility companies) should be supported.
Scientific cooperation can be intensified by a joint working group for scenarios and by the establishment of an academic exchange program.
The German-Japanese Energy Transition Council (GJETC) was established in 2016 by experts from research institutions, energy policy think tanks, and practitioners in Germany and Japan.
The objectives and main activities of the Council and the supporting secretariats are to identify and analyze current and future issues regarding policy frameworks, markets, infrastructure, and technological developments in the energy transition, and to hold Council meetings to exchange ideas and propose better policies and strategies. In its second project phase (2018-2020), the GJETC had six members from academia on the Japanese side, and eight members on the German side, with one Co-Chair from each country.
From October 2018 to March 2020, the GJETC worked on and debated six topics:
1) Digitalization and the energy transition. 2) Hydrogen society. 3) Review of German and Japanese long-term energy scenarios and their evaluation mechanism. 4) Buildings, energy efficiency, heating/cooling. 5) Integration costs of renewable energies. 6) Transport and sector coupling.
The outputs and the recommendations of the second phase of the GJETC are summarized in this report.
The COMBI project aimed at quantifying the multiple non-energy benefits of energy efficiency in the EU-28 area and incorporate those multiple impacts into decision-support frameworks for policy-making. Therefore, all multiple impacts of energy efficiency are analysed from an overall societal view in the project. The COMBI policy recommendations resulting from the evaluation outcomes are presented in this report.
COMBI draws on a reference scenario until the year 2030 including existing policies. By modelling 21 sets of "energy efficiency improvement" (EEI) actions, a second efficiency scenario was modelled amounting to additional energy savings of around 8% p.a. in 2030, and that is comparable to the EUCO+33 to EUCO+35 scenario. All figures quantified by COMBI relate to additional values, i.e. additional impacts resulting from additional EEI actions beyond the reference scenario as a consequence of additional policies. The project quantified in total 31 individual impact indicators with appropriate state-of-the-art models.
The implementation of energy efficiency improvement actions not only yields energy and greenhouse gas emission savings, but also leads to other multiple impacts such as air pollution reductions and subsequent health and eco-system effects, resource impacts, economic effects on labour markets, aggregate demand and energy prices or on energy security. While many of these impacts have been studied in previous research, this work quantifies them in one consistent framework based on a common underlying bottom-up funded energy efficiency scenario across the EU. These scenario data are used to quantify multiple impacts by energy efficiency improvement action and for all EU28 member states using existing approaches and partially further developing methodologies. Where possible, impacts are integrated into cost-benefit analyses. We find that with a conservative estimate, multiple impacts sum up to a size of at least 50% of energy cost savings, with substantial impacts coming from e.g., air pollution, energy poverty reduction and economic impacts.
Improvements in energy efficiency have numerous impacts additional to energy and greenhouse gas savings. This paper presents key findings and policy recommendations of the COMBI project ("Calculating and Operationalising the Multiple Benefits of Energy Efficiency in Europe").
This project aimed at quantifying the energy and non-energy impacts that a realisation of the EU energy efficiency potential would have in 2030. It covered the most relevant technical energy efficiency improvement actions in buildings, transport and industry.
Quantified impacts include reduced air pollution (and its effects on human health, eco-systems), improved social welfare (health, productivity), saved biotic and abiotic resources, effects on the energy system and energy security, and the economy (employment, GDP, public budgets and energy/EU-ETS prices). The paper shows that a more ambitious energy efficiency policy in Europe would lead to substantial impacts: overall, in 2030 alone, monetized multiple impacts (MI) would amount to 61 bn Euros per year in 2030, i.e. corresponding to approx. 50% of energy cost savings (131 bn Euros).
Consequently, the conservative CBA approach of COMBI yields that including MI quantifications to energy efficiency impact assessments would increase the benefit side by at least 50-70%. As this analysis excludes numerous impacts that could either not be quantified or monetized or where any double-counting potential exists, actual benefits may be much larger.
Based on these findings, the paper formulates several recommendations for EU policy making:
(1) the inclusion of MI into the assessment of policy instruments and scenarios,
(2) the need of reliable MI quantifications for policy design and target setting,
(3) the use of MI for encouraging inter-departmental and cross-sectoral cooperation in policy making to pursue common goals, and
(4) the importance of MI evaluations for their communication and promotion to decision-makers, stakeholders, investors and the general public.
In spite of differences in energy policies and supply, Japan and Germany have to master similar challenges: To reorganize the energy supply system towards - in the long term - being reliable, affordable, low in risks and resource use, and climate-neutral. At the same time, the ecological modernization should maintain or even strengthen international competitiveness. To better address these challenges, a bi-national expert council has been established between the two high-tech countries in 2016 - the GJETC.
The aim of the GJETC is to show that despite different starting points, a national energy transition can be more successful, if both countries learn from their strengths and also weaknesses, to avoid the latter. If the implementation of an energy transition in the two countries is socially and economically sound and advances technology innovation and deployment, it may not only double success, but can also serve as blue prints for other countries, especially due to learning from similarities and differences. For example: Why is per capita energy consumption higher in transport in Germany, but energy intensity higher in Japan's building sector? How can variable renewable energies be integrated in an efficient energy system at lowest costs?
The Council meets twice a year, holds stakeholder dialogues and outreach events, and prepares policy papers on strategic topics of mutual interest. Four comprehensive studies, each in cooperation of a German and a Japanese research institute, have been the basis for 15 joint key recommendations during the 1st phase. The 2nd phase to 2020 will study the role of hydrogen and digitalisation for the energy transition, as well as other topics. The paper presents the findings and recommendations of the GJETC of the first phase 2016-18 as well as first results of the second phase. It also reviews the setup of the GJETC and the way it works, to assess if and how it can serve as a role model of bilateral cooperation on the energy transition.
Estimating the sufficiency potential in buildings : the space between underdimensioned and oversized
(2019)
The emission reduction potential of energy efficiency and energy supply in buildings is estimated in various energy and climate action plans, scenarios, and potential analyses. But the third pillar of sustainability - sufficiency - is neglected in most studies.The increasing demand of space per person in the residential sector is a trend in most European countries. Its implication on energy use, demand for resources like land, building material, equipment, and waste production is enormous. Next to the ecological impact, the distribution of space has social and societal effects. Thus, sufficiency policies in the building sector complementing efficiency and energy policy are needed for a sustainable development of the European building stock.
But how can a sufficiency potential in the building sector be estimated? How much space and equipment is needed for a decent living and how much is too much? The paper proposes four areas of sufficiency in buildings: space, design and construction, equipment, and use. It presents a set of indicators, a quantitative estimate of energy savings from reduced per capita floor area, and visualises the sufficiency potential in European countries in an experimental approach. The final discussion focuses on the question: What does this mean for policy making?
On 26 January 2019, the Commission on Growth, Structural Change and Employment recommended that no more coal-fired power plants would be operated in Germany by 2038 at the latest. In this paper the Wuppertal Institute comments on the results of the Commission and makes recommendations for the current necessary steps for the climate and innovation policy in Europe, Germany and North Rhine-Westphalia.
Energy sufficiency has recently gained increasing attention as a way to limit and reduce total energy consumption of households and overall. This paper presents both the partly new methods and the results of a comprehensive analysis of a micro- and meso-level energy sufficiency policy package to make electricity use in the home more sufficient and reduce at least the growth in per-capita dwelling size. The objective is to find out how policy can support households and their members, as individuals or as caregivers, but also manufacturers and local authorities in practicing energy sufficiency. This analysis needed an adapted and partly new set of methods we developed. Energy sufficiency does not only face barriers like energy efficiency, but also potential restrictions for certain household members or characteristics, and sometimes, preconditions have to be met to make more energy-sufficient routines and practices possible. All of this was analysed in detail to derive recommendations for which policy instruments need to be combined to an effective policy package for energy sufficiency. Energy efficiency and energy sufficiency should not be seen as opposed to each other but work in the same direction - saving energy. Therefore, some energy sufficiency policy instruments may be the same as for energy efficiency, such as energy pricing policies. Some may simply adapt technology-specific energy efficiency policy instruments. Examples include progressive appliance efficiency standards, standards based on absolute consumption, or providing energy advice. However, sufficiency may also require new policy approaches. They may range from promotion of completely different services for food and clothes cleaning, to instruments for limiting average dwelling floor area per person, or to a cap-and-trade system for the total electricity sales of a supplier to its customers, instead of an energy efficiency obligation.
India's present development trajectory is at a crucial juncture with a requirement to meet the demands of a population of over 1.2 billion while ensuring environmental sustainability. The resulting economic growth over the past two decades has over-exploited finite natural resources and led to tremendous environmental degradation. Therefore, decoupling economic growth from resource consumption is crucial in the transformation towards a green economy. Building construction is one of the most resource-intensive sectors, as well as creating a high impact on the environment. This study analyzes existing mechanisms in India's building construction sector that attempt to decouple economic growth from resource use and environmental impacts. The key contributors for decoupling are analyzed. Recommendations for regulations, market incentives, transparency, data monitoring and capacity-building are provided for an array of policy initiatives targeted at political and financial decision-makers at the national, state and local levels for different buildings.
Reliably reducing the emissions in the building sector plays a crucial role if the 1.5°C climate target from the Paris Agreement is to be met. The observed trends show a significant increase in building energy use, especially in emerging economies. Counteracting these trends is absolutely essential, especially in the light of urbanisation, population growth and changing lifestyles. In terms of mitigating the climate impact of buildings, ensuring high levels of efficiency (i.e. very low energy needs, especially for heating and cooling) has the greatest potential for saving energy and emissions, and is at the same time the prerequisite for effective use of energy from renewable sources. Clearly defined targets and suitable metrics are essential to enable appropriate design decisions. Implemented projects clearly indicate that quality assured design and construction lead to reliable in-use energy performance. Effective policy packages to address opportunities and challenges are important drivers to support the uptake of state-of-the-art efficiency measures in the urban building sector.
In this project, an overview and prioritization of relevant technologies of the German energy transition are presented in a consolidated form. Many of the relevant technologies have already been developed and deployed to the market. However, in various sectors like system integration or sector coupling, innovation needs remain, as well as in-depth research on further possibilities and potentials for cost degression and technology optimization for all technologies.
Concretely defined targets are guiding policy efforts and the measures required to achieve national energy and low-carbon transformations in order to reach the maximum 2 degree climate change mitigation target agreed at the COP in Paris in 2015. Reducing energy consumption by harnessing the potential of energy efficiency, expanding the use of renewable energy resources, and transforming all sectors into low-energy and low-carbon structures is crucial. Among the G20 states, most states have set targets for renewable energies, energy efficiency, and greenhouse gas (GHG) emission reductions. Yet, it seems that starting points and target units differ a lot between the G20, and hence comparability is difficult. This topical paper presents a synopsis on the current targets within the G20. The relative lack of energy efficiency targets shows that this pillar needs much greater efforts in current and future energy policy.
Energy efficiency activities are high on the current EU energy policy agenda. Key policy instruments like the Energy Efficiency Directive (EED), the Energy Performance of Buildings Directive (EPBD) and the Energy Labelling Directive are under revision.
In a project for the German government, we therefore analysed the effectiveness and consistency of existing sectoral policy packages anew, to open the discussion on which policy changes to the EU's energy efficiency policy packages are crucial to reach the targets.
This comprehensive review addressed the industrial, buildings, and transport sectors plus the overarching governance framework (targets and roadmaps, EED, energy taxation and EU ETS). For each of these, the first step was a gap analysis of the main deficits in the sectoral policy packages, against effective model packages.
At first glance, the combination of energy efficiency policies at EU level seems already quite comprehensive. However, their design and implementation often lack a consistent and ambitious approach to leverage their full potential.
To give some examples of the many shortcomings identified, the governance framework suffers from exceptions and the transport sector being only marginally considered in the EED; an outdated Energy Tax Directive has very low minimum rates and several exception clauses; there is a lack of commitment to implement energy management systems and investment projects in large companies; a clear EU-wide definition of nearly zero energy buildings (nZEB) is missing; and the labelling of energy-using products is still confusing for consumers. Subsequently, we elaborated comprehensive policy recommendations to increase the effectiveness of all these policies, and to bridge some gaps with new policies. A list of priorities was established to sort them by their relevance.
India is currently at a crucial juncture where it is aiming for economic growth to meet the basic needs of its 1.2 billion people. However, so far this growth has resulted in energy shortages and the increasing use of limited resources. This policy brief series is about decoupling, i.e. improving efficiency to reduce the resources and energy needed for this growth and meet the country's increasing development needs.
The construction sector is highly resource and energy intensive; it is therefore imperative that it moves towards a path of environmental sustainability. This transition is likely to be achieved by decoupling both resource and energy use from the sector's growth. Decision-makers in the sector will play a crucial role in achieving this. The aim of this policy brief series is to inform decision-makers in India at central government and state level about the current status of research, policy and institutions in the Indian construction sector and to identify key drivers and barriers. Finally, practical recommendations will be made for decision-makers about how to promote decoupling of resource and energy use from growth in the construction sector.
Policy brief 3 focuses on recommendations both at national and state level on the possible interventions that could result in resource and energy use being decoupled from growth in the Indian construction sector. Lack of a comprehensive policy on resource efficiency and the possibility of using secondary raw materials to obtain resource and impact decoupling continue to be the key issues that India will have to grapple with in the years to come.
India is currently at a crucial juncture where it is aiming for economic growth to meet the basic needs of its 1.2 billion people. However, so far this growth has resulted in energy shortages and the increasing use of limited resources. This policy brief series is about decoupling, i.e. improving efficiency to reduce the resources and energy needed for this growth and meet the country's increasing development needs.
The construction sector is highly resource and energy intensive; it is therefore imperative that it moves towards a path of environmental sustainability. This transition is likely to be achieved by decoupling both resource and energy use from the sector's growth. Decision-makers in the sector will play a crucial role in achieving this. The aim of this policy brief series is to inform decision-makers in India at central government and state level about the current status of research, policy and institutions in the Indian construction sector and to identify key drivers and barriers. Finally, practical recommendations will be made for decision-makers about how to promote decoupling of resource and energy use from growth in the construction sector.
Policy brief 2 focuses on analysing the potential for decoupling in the Indian buildings and construction sector. Primary and secondary research was conducted to identify the factors that influence decoupling. Subsequently, a framework was established to make it possible to measure the nature and extent of decoupling that is possible within the existing policy environment. Furthermore, gaps, drivers and barriers have been identified which could enable a potential analysis study on decoupling to be carried out. In addition, examples of good practice from Germany and other European countries have been studied with a view to learning lessons that can help to bridge the current gaps in India.
Decoupling energy and resource use from growth in the Indian construction sector : a baseline study
(2017)
India is currently at a crucial juncture where it is aiming for economic growth to meet the basic needs of its 1.2 billion people. However, so far this growth has resulted in energy shortages and the increasing use of limited resources. This policy brief series is about decoupling, i.e. improving efficiency to reduce the resources and energy needed for this growth and meet the country's increasing development needs.
The construction sector is highly resource and energy intensive; it is therefore imperative that it moves towards a path of environmental sustainability. This transition is likely to be achieved by decoupling both resource and energy use from the sector's growth. Decision-makers in the sector will play a crucial role in achieving this. The aim of this policy brief series is to inform decision-makers in India at central government and state level about the current status of research, policy and institutions in the Indian construction sector and to identify key drivers and barriers. Finally, practical recommendations will be made for decision-makers about how to promote decoupling of resource and energy use from growth in the construction sector.
Policy brief 1 focuses on the baseline for decoupling in the Indian construction sector. The study draws attention to the existing scenario in terms of key policies, research and institutions linked to resources and energy in the sector.
Energy sufficiency has recently gained increasing attention as a way to limit and reduce total energy consumption of households and overall. This paper presents selected results of a research project funded by the German Federal Ministry of Education and Research that examined the potentials and barriers for energy sufficiency with a focus on electricity in households, how household members perceive sufficiency practices, and how policymakers could support and encourage these. Bottom-up calculations for an average 2-person household in Germany yielded a total electricity savings potential from energy efficiency and sufficiency combined of theoretically up to 75 %.
The continuous growth of per capita living space was identified as one important driver for additional energy consumption both for heat and electricity. The paper will present findings of a representative survey of 600 persons responsible for the housework. It revealed that a part of the households is already practicing sufficiency options or are open towards these. Up to 30 % of these households can imagine, given the right conditions and policy support, to move to a smaller dwelling or to share an apartment with others when they are older.
Results of a first comprehensive analysis of an energy sufficiency policy to encourage and support households to sufficiency practices form the second part of the paper, with a focus on the feasibility and potential effectiveness of instruments for limiting the growth in average living space per person. This includes a case study on fostering communal housing projects as a measure to reduce living space. Further, the feasibility of a cap scheme for the total electricity sales of a supplier to its customers was examined. Instruments supporting energy-efficient and sufficient purchase and use of equipment complete the integrated energy sufficiency and efficiency policy package.
The paper will finally present the project's conclusions on an integrated energy sufficiency policy package resulting from this analysis.
The core objective of Energy Efficiency Watch 3 (EEW3) is to establish a constant feedback loop on the implementation of European and national energy efficiency policies and thus enable both compliance monitoring and mutual learning on effective policy making across the EU. The project team applied a mixed-method approach to assess energy efficiency policy developments in EU Member States. It analysed progress of national policies by screening official documents, sought experts' knowledge via an EU-wide survey and has been creating new consultation platforms with a wide spectrum of stakeholders including parliamentarians, regions, cities and business stakeholders. Analysis of the National Energy Efficiency Action Plans (NEEAPs), the expert survey with input from over 1,100 experts on policy ambition and progress in each Member State, as well as 28 Country Reports have been central elements in EEW3. This paper will present the main conclusions and policy recommendations of EEW3. In doing so, it will first summarise the findings of the document analysis based on the 28 Country Reports, showing developments of energy efficiency policies since the second NEEAP in 2011 in a cross-country overview for six sectors. These findings are then contrasted with the experts' perspective on progress in energy efficiency policies in their countries as collected in the EEW survey. Moreover, ten case studies of good practice energy efficiency policies are shown, three of them will be presented in more detail. The paper ends with key policy conclusions for improving the effectiveness of European energy efficiency policies. A key finding is that policy implementation has improved a lot since 2011 but more is needed to achieve the EED Art. 7 and other targets.
Energy efficiency improvements have numerous benefits/impacts additional to energy and greenhouse gas savings, as has been shown and analysed e.g. in the 2014 IEA Report on "Multiple Benefits of Energy Efficiency". This paper presents the Horizon 2020-project COMBI ("Calculating and Operationalising the Multiple Benefits of Energy Efficiency in Europe"), aiming at calculating the energy and non-energy impacts that a realisation of the EU energy efficiency potential would have in 2030. The project covers the most relevant technical energy efficiency improvement actions and estimates impacts of reduced air pollution (and its effects on human health, eco-systems/crops, buildings), improved social welfare (incl. disposable income, comfort, health, productivity), saved biotic and abiotic resources, and energy system, energy security, and the macroeconomy (employment, economic growth and public budget). This paper explains how the COMBI energy savings potential in the EU 2030 is being modelled and how multiple impacts are assessed. We outline main challenges with the quantification (choice of baseline scenario, additionality of savings and impacts, context dependency and distributional issues) as well as with the aggregation of impacts (e.g. interactions and overlaps) and how the project deals with them. As research is still ongoing, this paper only gives a first impression of the order of magnitude for additional multiple impacts of energy efficiency improvements may have in Europe, where this is available to date. The paper is intended to stimulate discussion and receive feedback from the academic community on quantification approaches followed by the project.
Sustainable energy
(2017)
The core objective of Energy Efficiency Watch 3 (EEW3) is to establish a constant feedback loop on the implementation of European and national energy efficiency policies and thus enable both compliance monitoring and mutual learning on effective policy making across the EU. The project team applied a mixed-method approach to assess energy efficiency policy developments in EU Member States. EEW3 analysed the progress made in the implementation of energy efficiency policies in European Member States since the publication of the second National Energy Efficiency Action Plans (NEEAPs) in 2011 by screening official documents, sought experts' knowledge via an EU-wide survey and has been creating new consultation platforms with a wide spectrum of stakeholders including parliamentarians, regions, cities and business stakeholders. Results are presented in Country Reports for each of the 28 Member States, the Expert Survey Report, 10 Case Studies presenting outstanding energy efficiency policies in Europe, the Key Policy Conclusions, the project summary report in brochure format and this Feedback Loop Report, which summarises the overall EEW3 portfolio.
The European Horizon 2020-project COMBI ("Calculating and Operationalising the Multiple Benefits of Energy Efficiency in Europe") aims at estimating the energy and non-energy impacts that a realisation of the EU energy efficiency potential would have in the year 2030. The project goal is to cover the most important technical potentials identified for the EU27 by 2030 and to come up with consistent estimates for the most relevant impacts: air pollution (and its effects on human health, eco-systems/crops, buildings), social welfare (including disposable income, comfort, health and productivity), biotic and abiotic resources, the energy system and energy security and the macro economy (employment, economic growth and the public budget). This paper describes the overall project research design, envisaged methodologies, the most critical methodological challenges with such an ex-ante evaluation and with aggregating the multiple impacts. The project collects data for a set of 30 energy efficiency improvement actions grouped by energy services covering all sectors and EU countries. Based on this, multiple impacts will be quantified with separate methodological approaches, following methods used in the respective literature and developing them where necessary. The paper outlines the approaches taken by COMBI: socio-economic modelling for air pollution and social welfare, resource modelling for biotic/abiotic and economically unused resources, General Equilibrium modelling for long-run macroeconomic effects and other models for short-run effects, and the LEAP model for energy system modelling. Finally, impacts will be aggregated, where possible in monetary terms. Specific challenges of this step include double-counting issues, metrics, within and cross-country/regional variability of effects and context-specificity.
The economic assessment of low-carbon energy options is the primary step towards the design of policy portfolios to foster the green energy economy. However, today these assessments often fall short of including important determinants of the overall cost-benefit balance of such options by not including indirect costs and benefits, even though these can be game-changing. This is often due to the lack of adequate methodologies.
The purpose of this paper is to provide a comprehensive account of the key methodological challenges to the assessment of the multiple impacts of energy options, and an initial menu of potential solutions to address these challenges.
The paper first provides evidence for the importance of the multiple impacts of energy actions in the assessment of low-carbon options.
The paper identifies a few key challenges to the evaluation of the co-impacts of low-carbon options and demonstrates that these are more complex for co-impacts than for the direct ones. Such challenges include several layers of additionality, high context dependency, and accounting for distributional effects.
The paper continues by identifying the key challenges to the aggregation of multiple impacts including the risks of overcounting while taking into account the multitude of interactions among the various co-impacts. The paper proposes an analytical framework that can help address these and frame a systematic assessment of the multiple impacts.
Energy efficiency has multiple benefits. It usually is a win-win option for all aspects of sustainability - environment, social objectives, and economy. We need to evaluate and communicate these multiple benefits - to citizens, companies, and policy-makers. Due to strong market barriers, effective governance and policy packages for energy efficiency are needed. Evaluation shows effective policy can achieve around 2% per year of additional energy savings.
The electric utility sector in Australia, Germany and the U.S. are all going through major changes driven by declining sales, increasing use of distributed energy sources and policy responses to global climate change. This paper discusses efforts in each of these countries to reform their electric industries, address climate change and promote energy efficiency. Going forward, we see a role for government, utilities and private market energy efficiency efforts in all three countries, although the emphasis will vary by country and will evolve over time. Where all three parties can work together with a common vision, reform efforts are likely to be more successful and more sustained. In all three countries the future is uncertain. In the face of this uncertainty, energy efficiency supporters need to keep abreast of these changes, and find more flexible and nimble policy strategies for energy efficiency to prosper, as the future is likely to unfold in unexpected ways.
Energy efficiency of a range of domestic appliances covered by the labelling and ecodesign directives has improved significantly over the last 15 years. However, the power consumption of the German residential sector has remained relatively constant over this period. Besides other factors, such as decreasing average household size, the main reasons for this development were the increases of the types, features, size, equipment stock and usage times of appliances and devices in private households.
The project "Energy Sufficiency - strategies and instruments for a technical, systemic and cultural transformation towards sustainable restriction of energy demand in the field of construction and everyday life" investigates how the complementation of energy efficiency with energy sufficiency could lead to more user adequate domestic products and product-service systems and thereby result in an absolute reduction of power consumption.
In this project, energy sufficiency is defined as a strategy to reduce energy consumption by three approaches:
1. Quantitative reduction of sizes, features, usage times of devices etc.
2. Substitution of technical equipment in households by e.g.urban services.
3. Adjustment of technical services delivered by appliances toutility needed and desired by users.
The energy saving effects of an application of these approaches were modelled for different types of households and the energy saving potentials of energy sufficiency quantified. Innovative approaches for user adequate products and services were developed in open innovation workshops by the Design Thinking method. The paper summarizes some of the intermediate results of theoretical and transdisciplinary investigations of the project that runs until May 31, 2016. Furthermore, a first set of design criteria for user adequate appliances enabling energy sufficiency are developed based on these results. The paper concludes with suggestions for the future development of energy labelling and ecodesign derived from the design criteria and supplemented by examples of existing requirements according to the voluntary environmental label "Blauer Engel".
The efficiency strategy to exploit the potential for energy savings in buildings still is applied rather slowly in most countries. In addition, there are indications that energy savings are partly compensated particularly by wealth but also rebound effects, the "empty nest" (persistence of elderly people and couples in family homes), and cohort effects (e.g. vintages of people or buildings). In Germany, as in other European countries, the existing trend in housing is a continuously growing floor space per capita. Over the last decades it expanded from about 20 m2 in 1960 to currently 45 m2 per person. Forecasts expect a further increase to more than 50 m2 per person. Obviously, more floor space needs more energy for space heating and cooling, ventilation, and lighting, but it also allows the household to operate more and or bigger appliances, all of which increase energy consumption.
On the other hand, housing projects emerge offering relatively small private living spaces in combination with various shared spaces to use. Many of them are based on private initiatives. But what is the motivation behind it? And is there a higher need for new living concepts in the future?
The proposed paper presents main drivers of increasing floor space per capita in Germany and discusses the question if more space is necessary for higher comfort. It presents different examples of housing concepts that strive to achieve good living with less space and suggests a "building typology of sufficiency".
Finally, the paper discusses qualitatively to which extent these housing concepts can lead to less energy use and emissions. In this way sufficiency could be best friend with efficiency and tackle wealth, rebound, and other effects that counter-act efficiency progress. But therefore, as the paper concludes, politics and policies should recognise sufficiency as a field of action instead of referring to individual decisions and lifestyles.
Energy sufficiency policy : an evolution of energy efficiency policy or radically new approaches?
(2015)
In the last four decades, energy efficiency increased significantly in OECD countries. However, only during the most recent years, total energy consumption started to decrease a little, and much more slowly than energy efficiency potentials would suggest. Energy sufficiency has therefore gained new attention as a way to limit and reduce total energy consumption of a household or a country overall.
The project "Energiesuffizienz" funded by the German ministry for research has examined what energy sufficiency actually is, and what householders, household members but also manufacturers and local authorities could do to make electricity use in the home more sufficient. The focus of this paper is the policy part of the project - the first comprehensive analysis of an energy sufficiency policy.
The objective is to find out how policy can support market actors in using the energy sufficiency options identified. As for energy efficiency policy, it starts with the gathering of potential sufficiency actions and the analysis of the relevant barriers all market actors face, to derive recommendations for which policy instruments need to be combined to an effective policy package, and which other pre-conditions have to be met. Energy efficiency and energy sufficiency should not be seen as opposed to each other but work in the same direction - saving energy. Therefore, some instruments of the energy sufficiency policy package may be the same as for energy efficiency - such as energy taxation, and linear or progressive energy prices. Some may simply adapt technology-specific energy efficiency policy instruments. Examples are progressive appliance efficiency standards, standards based on absolute consumption, or providing energy advice. However, sufficiency may also require radical new approaches particularly to mitigate the drivers of non-sufficiency. They may range from promotion of completely different services for food and clothes cleaning, to instruments for limiting average dwelling floor area per person, or to a cap-and-trade system for the total electricity sales of a supplier to its customers, instead of an energy efficiency obligation. The paper presents these and other elements of an integrated energy sufficiency policy package resulting from this analysis.
The paper presents the results of an ex-ante evaluation of the economy-wide benefits that may be achieved through the implementation of the 20-year Energy Efficiency Action Plan (EEAP) in Thailand. The objective of the EEAP is to reduce energy intensity by 25 % in 2030 compared to 2010. This is to be reached by reducing the projected energy consumption by 20 % or 38 Mtoe until 2030. We have specified an analytical framework, which allows for a calculation of the overall energy cost savings, energy import cost reductions and reduced CO2 emissions. Moreover, we calculated the induced energy efficiency investments, employment effects and impacts on governmental budget. The evaluation shows that an effective implementation of the plan may lead to a reduction in energy expenditure of 37.7 billion EUR by 2030. Moreover, the EEAP-induced energy savings will significantly reduce the greenhouse gas emissions as well as Thailand’s energy import costs and generate private investment in energy efficiency of about 5 billion EUR annually in 2030, which in turn may lead to about 300,000 new jobs. The size of the net impact of the plan on Thailand’s governmental budget is uncertain due to positive and negative effects on corporate and income tax revenues, expenses for unemployment benefits, governmental energy consumption, expenses for energy subsidies and energy tax income.