25 energy efficiency policy- 2011 update

7/30/2019 25 Energy Efficiency Policy- 2011 Update

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R E COMMENDA T I ON S

25 EnergyEfficiencyPolicy


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Australia

Austria

Belgium

Canada

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Japan

Korea (Republic o)

Luxembourg

Netherlands

New Zealand

Norway

Poland

Portugal

Slovak Republic

Spain

Sweden

Switzerland

Turkey

United Kingdom

United States

The European Commission

also participates in

the work of the IEA. O

ECD/IEA,

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2010

2015

2020

2025

2030

20

25

30

35

40

GtCO

2

Buildings 25%

Appliances 10%

Lighting 5%

Transport 29%

Industry 32%

Baseline emissions 40 Gt

Remaining CO2 emissions

after energy eciency actions

Increasing energy efciency is the quickest and least costly way oaddressing energy security, environmental and economic challenges.

To help its member countries achieve the benefts o energy efciency across their economies,the International Energy Agency (IEA) developed (in 2008) a set o 25 energy efciency

policy recommendations or seven priority areas:n Cross-sectoral n Transport

n Buildings n Industry

n Appliances and equipment n Energy utilities

n Lighting

The 25 recommendations have received high-level political and stakeholdersupport, and resulted in increased implementation.

In order to reect emerging priorities, the IEA, in consultation with international experts

and member countries, has streamlined and updated the 25 recommendations.

The updated 25 recommendations cover a robust portolio o policies that member andnon-member countries should consider in the context o their energy economies.

This portolio includes policies to cost-eectively increase energy efciency byestablishing market signals to motivate eective action, accelerate the introductiono new technologies, and strengthen and enorce minimum energy perormance

standards (MEPS) or appliances, lighting, equipment and building energy codes.

The IEA estimates that i implemented globally without delay, the proposed

actions could save as much as 7.6 gigatonnes (Gt) CO2/year by 2030 almost 1.5 times current US annual CO2 emissions. In 2010, this

corresponded to energy savings o more than 82 EJ/year by 2030, or17% o the current annual worldwide energy consumption.

CO2 savings potential rom energy efciency recommendations


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Cross-sectoral1 Data collection and indicators

2 Strategies and action plans

3 Competitive energy markets,

with appropriate regulation

4 Private investment in energy efciency

5 Monitoring, enorcement and evaluation

Buildings6 Mandatory building codes and MEPS

7 Net-zero energy consumption in buildings

8 Improved energy efciency in existing buildings

9 Building energy labels or certifcates

10 Energy perormance o building components

and systems

Appliances andequipment11 Mandatory MEPS and labels

12 Test standards and measurement protocols

13 Market transormation policies


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Lighting14 Phase-out o inefcient lighting products

15 Energy-efcient lighting systems

Transport16 Mandatory vehicle uel-efciency standards

17 Measures to improve vehicle uel efciency

18 Fuel-efcient non-engine components

19 Eco-driving

20 Transport system efciency

Industry21 Energy management

22 High-efciency industrial equipment and systems

23 Energy efciency services or SMEs

24 Complementary policies to support industrial

energy efciency

Energy utilities25 Utility end-use energy efciency schemes


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Many o the barriers to energy efciency aect allsectors. These obstacles include:

n higher initial capital costs

n principal agent problems

n uninormed investors with little amiliarity withenergy-efcient products

n risk exposuren discount rate issues

n the difculty o quantiying external benefts

As a result, it is important to coordinate policies ina way that addresses all o these barriers, across allsectors.

Governments play a crucial role in setting the cross-sectoral ramework or energy efciency. Governments

can help to stimulate investment in energy efciencyand accelerate implementation through nationalenergy efciency strategies. Once in place, monitoring,enorcement and evaluation o such strategies arecrucial to identiying gaps and achieving targets.Compiling end-use data and reporting it to the IEAwill also lead to more inormed energy efciencypolicy decisions.

To improve energy efciency across all sectors, the IEArecommends action in the ollowing areas:

1 Energy efciency data collection and indicators

Reliable, timely and detailed data on energy end uses, markets,technologies and efciency opportunities in all sectors contribute tothe development o eective energy efciency strategies and policies.Governments should, in determining what data to collect, reerenceinternational data collection eorts, especially the IEA annual energyefciency data template.

2 Strategies and action plans

Based on analysis o energy use, markets, technologies and efciencyopportunities, governments should ormulate and regularly updatestrategies and action plans or improving energy efciency throughouttheir domestic economies.

z Best practice strategies and action plans should:

z Identiy barriers to cost-eective efciency investments and,wherever easible, attempt to remove, minimise or overcome suchbarriers.z

Assess opportunities or energy efciency improvements andprioritise action in sectors and end uses in which government policiesare most likely to yield the largest, most cost-eective improvements.z Set clear objectives and timelines, and establish evaluation

methods.z Ensure coherence with energy, environmental/climate and

economic strategies and plans.z Take into account the considerable experience and analysis o

other countries and international organisations.

z Strategies and action plans should provide or the continuousintegration and co-ordination o new and emerging technologies.

3 Competitive energy markets, with appropriateregulation

Governments should periodically review regulations and subsidies toensure that retail energy prices reect the ull costs o energy supplyand delivery, including environmental costs.

4 Private investment in energy efciency

Governments should acilitate private investment in energy efciencyby supporting energy efciency capacity building, standardisedmeasurement and verifcation protocols, private lending and energyefciency technology research, development demonstration anddeployment (RDD&D).

Measures should include:

z Energy efciency knowledge generation and dissemination, andreliable technical assistance on energy efciency opportunities in allsectors through networks or energy advisory services.

z Education and training programmes to ensure that all sectors haveaccess to the skilled labour orce necessary to eectively improveenergy efciency.

z Development o measurement and verifcation protocols to ensure

consistency in methodology, overcome uncertainties in quantiyingthe benefts o energy efciency investments, and stimulate increasedprivate-sector involvement.

z Collaboration with private fnancial institutions to develop public-private partnerships and other rameworks that acilitate energyefciency fnancing.

z Broad fnancial and collaborative support or RDD&D.

5 Monitoring, enorcement and evaluation o policiesand measures

Governments should monitor, enorce, evaluate, and periodicallyupdate, energy efciency policies and measures in all sectors.

Policies should be guided by the ollowing principles:

z Policy and programme eectiveness should be evaluated duringand ater implementation, with the results used as an input tosubsequent decision making. Monitoring and evaluation, with

baseline assessments and periodic review and reporting, should beestablished when new policies and measures are implemented.

z Non-compliances should be identifed with a air and transparentprocess, and should be reported and made public. Associatedpenalties should be clear and serve as constructive deterrents tonon-compliance.

Cross-sectoral


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To tap savings in the buildings sector, the IEA recommends:

6 Mandatory building energy codes and minimumenergy perormance

Governments should require all new buildings, as well as buildingsundergoing renovation, to be covered by energy codes and meetminimum energy perormance standards (MEPS) that aim to minimiselie-cycle costs. Energy codes and MEPS should be enorced, regularlystrengthened and take a holistic approach that includes the buildingenvelope and equipment.

7 Aiming or net-zero energy consumption in buildings

Governments should support and encourage the construction obuildings with net-zero energy consumption and take initiativesto make such buildings commonly available in the market, wheneconomically viable based on a lie-cycle cost analysis.

Policies should include:

z Targets or market share o net-zero energy consumption buildingsin all new construction by 2020.

z The use o net-zero energy consumption buildings as a reerence or

mandatory MEPS in uture updates o building codes.8 Improving the energy efciency o existing buildings

Governments should implement a package o policies to improve theenergy efciency o existing buildings, with emphasis on signifcantimprovements to building envelopes and systems during renovations.

Policies should include:

z An ambitious timeline and renovation rate or cost-eectivereduction o the energy consumption in existing buildings.

z MEPS or the building as a whole, including key building-envelopecomponents and energy-using systems, to be met during renovations.

z Measures to aid building owners and occupants to improve energyefciency in existing buildings, such as:

z Energy audits, energy ratings and certifcation schemes.z Incentives to encourage investments in long-lasting building

envelope and system improvements, and increased market

penetration o new high-efciency products.z Training and other measures to improve the quality and reliability

o building retroft services.z Inormation on fnancing options.z A strong commitment by governments to improve the efciency o

public-sector buildings.

9 Building energy labels or certifcates

Governments should require building energy perormance labels orcertifcates that provide inormation to owners, buyers and renters.

10 Improved energy perormance o buildingcomponents and systems

Governments should establish policies to improve the energy efciencyperormance o critical building components, such as windows andheating, ventilating and cooling (HVAC) systems, in order to improvethe overall energy perormance o new and existing buildings.

Governments should implement a package o policies to:

z Improve the overall energy perormance o windows and otherglazed areas. This policy package should include:

z Perormance-based requirements or guidelines that identiy themaximum share o glazed area that is appropriate or specifc buildingtypes.z MEPS or windows and other glazing that minimise lie-cycle costs.z A requirement or window and glazed-product manuacturers to

provide perormance labelling based on standard test protocols andcertifed product testing.z Reduce energy demand rom HVAC systems. This policy package

should include:

z MEPS or HVAC systems that are designed to minimise lie-cycle costs.z A requirement or HVAC product manuacturers to provide energy

efciency labelling and urther energy efciency inormation or theirproducts.

z Inormation and training or building designers, owners and othersto ensure that HVAC systems are appropriately sized, installed, testedand maintained so as to maximise building energy perormance atleast lie-cycle costs.z Promote energy management and control systems to reduce energy

consumption and better target energy-saving opportunities.

Buildings

Buildings hold great potential or cost-eective energysavings. The IEA estimates that the energy savingspotential in this sector in 2009 will be in the range o20 exajoules (EJ) per year by 2030, which is the sameas the current annual electricity consumption o theUnited States and Japan combined.

Barriers such as split incentives between tenants and

landlords, lack o awareness o efcient technologies,absence o qualifed green technicians and highinitial investment costs threaten market-driven energysavings measures.

Governments can eliminate these barriers and achievebuilding sector energy savings by implementing apackage o policies. In particular, governments should:

n Require all new buildings, as well as buildingsundergoing renovation, to meet energy codes and

minimum energy perormance standards (MEPS).n Support and encourage the construction o buildingswith net-zero energy consumption.

n Implement policies to improve the energy efciencyo existing buildings with emphasis on signifcantimprovements to building envelopes and systemsduring renovations.

n Require building energy perormance labels or certifcatesthat provide inormation to owners, buyers and renters.

n Establish policies to improve the energy efciencyperormance o critical building components in orderto improve the overall energy perormance o new andexisting buildings.


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To achieve signifcant energy savings in this sector,the IEA recommends:

11 Mandatory MEPS and labelsor appliances and equipment

Governments should adopt and regularly update the stringency omandatory MEPS and labels across the ull spectrum o appliancesand equipment, taking into account proven internationalpractices.

Governments should:

z Prioritise MEPS and labels or appliance and equipment typesthat are likely to result in the largest energy, economic and

environmental benefts, taking into account likely uture sales onew and replacement units, the introduction o new technologies,and emerging issues such as network-connected appliances andequipment.

zAllocate resources to monitoring compliance, veriying accuracyo claimed perormance and enorcing mandatory MEPS.

12 Test standards and measurement protocolsor appliances and equipment

Governments should ensure that product test standards andmeasurement protocols are regularly updated. They shouldalso align national policies with the development and use ointernational test standards and measurement protocols in orderto assist perormance comparisons and benchmarking or tradedproducts, and to reduce industry compliance costs.

13 Market transormation policies

or appliances and equipmentGovernments should aim to accelerate the transormation othe appliance and equipment market through incentives andother measures to support the introduction and uptake o newtechnologies and high-efciency appliances and equipment.


z Financial incentives, procurement programmes, endorsementschemes and other market-support measures ocused on the mostcost-eective, energy-efcient products available.

z Engagement in international collaboration and globaldialogues with the aim o establishing co-ordinated policiesthat will help to increase the demand or and trade in efcientappliances and equipment

Appliances andequipment

Residential appliances and equipment represent oneo the astest-growing energy loads. The IEA estimatesthat at least 3.7 EJ per year could be saved cost-eectively by 2030.

The suite of IEA appliance and equipmentrecommendations covers MEPS or labels, energyperormance test standards and measurement protocols,

and complementary market transormation policies.

Mandatory energy perormance requirements andlabels have proved to be a highly cost-eective policytool or encouraging the reduction o average energyconsumption in equipment without reducing consumerchoice or triggering sustained increases in prices.

The eective implementation o energy efciency policiesor appliances and equipment relies upon the use oaccurate energy perormance measurement standards

and protocols. National energy efciency policyobjectives will be undermined by energy measurementstandards that ail to reect actual energy use and/orprovide a true in-use efciency ranking o equipment.Furthermore, experience shows that international co-ordination on test standards or globally traded productscan reduce industry compliance costs.

Governments should complement mandatory energyperormance requirements and labels with a package

o measures that accelerate the transormation o theappliance market towards high-efciency products.


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To achieve signifcant energy savings in the lightingsector, the IEA recommends:

14 Phase-out o inefcient lighting productsand systems

Governments should phase-out inefcient lighting products(including inefcient ballast, lamp, lamp housing, fxtureand lighting controls) as soon as technically easible andeconomically viable.

Governments should:

zAdopt lighting quality, reliability and MEPS or new andexisting lighting products.

z Support the development, use and regular updating ointernational test standards and measurement protocols toenable perormance comparisons and benchmarking or tradedproducts, to reduce industry compliance costs and to supportnational policy requirements.

15 Energy-efcient lighting systems

Governments should require and promote improved lightingsystems design and management. This should be done byensuring that building codes promote the use o natural lightand include MEPS or lighting systems. Further measures includeinormation and training directed at architects, builders, ownersand managers.

Lighting represents almost 20% o global electricityconsumption. This consumption is similar to theamount o electricity generated by nuclear power.

The latest IEA estimates show the total savingspotential in residential and services lighting at morethan 2.4 EJ per year by 2030.

To achieve energy savings in lighting, the IEArecommends governments:

n Phase-out inefcient lighting products as soon astechnically easible and economically viable.

n Require and promote improved lighting systemsdesign and management by ensuring that buildingcodes promote the use o natural light and includeMEPS or lighting systems.

Lighting


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The transport sector remains one o the most challengingareas or improving energy efciency. The IEA estimatesthat the potential energy savings achievable throughimproved efciency in the transport sector, as o 2009,are in the range o 30 EJ per year by 2030, or theequivalent o the current annual oil consumption o theEuropean Union.

The IEA recommends several measures to tap energy-savings in this sector.

Notably, governments should:

n Implement and periodically strengthen mandatoryuel-efciency standards or light- and heavy-dutyvehicles.

n Put in place policies to improve the perormance otyres, air conditioning, lighting and other non-enginecomponents that aect a vehicles uel efciency.

n Adopt measures such as labelling, incentives andtaxes to encourage the sale o more efcient vehicles.

n Promote eco-driving by making it a required elemento drivers education programmes and requiringeedback instruments in new vehicles.

n Enable policies that increase the overall energyefciency o national, regional and local transportsystems, and promote shits o passengers and reight

to more efcient modes.

To achieve signifcant energy savings in this sector,the IEA recommends:

16 Mandatory vehicle uel efciency standards

Governments should adopt and regularly update uel-efciencystandards or road vehicles.

Fuel-efciency standards should:

z Introduce and regularly strengthen mandatory uel-efciencystandards or light-duty vehicles.

z Establish testing procedures or measuring uel efciency o heavy-duty vehicles and adopt uel-efciency standards or those vehicles.

z Harmonise or increase the comparability o vehicle uel-efciency

test methods.17 Measures to improve vehicle uel efciency

In addition to mandatory vehicle uel-efciency standards,governments should adopt measures such as labelling, incentivesand taxes to boost vehicle efciency and accelerate the marketpenetration o new efcient vehicle technologies.


z Vehicle uel economy labels.

z Vehicle taxes to encourage the purchase o more uel-efcient vehicles.

z Inrastructure support and incentive schemes or very low CO2-emitting and uel-efcient vehicles.

18 Fuel-efcient non-engine components

Governments should adopt measures to reduce the negative impact onuel efciency o vehicle components, such as tyres and air-conditioning

systems, that are oten excluded rom vehicle uel-efciency testing andrequirements.

To improve the perormance o non-engine components, governmentsshould:

z Adopt new international test procedures or measuring the rollingresistance o tyres, and establish labelling and maximum rollingresistance limits or road-vehicle tyres.

z Adopt measures to promote proper tyre ination levels. This shouldinclude mandatory ftting o tyre-pressure monitoring systems on newroad vehicles.

z Introduce energy efciency requirements or air-conditioning systemsor include the energy efciency o such systems in uel-economy testing.

19 Improving vehicle operational efciency througheco-driving and other measures

Governments should ensure that measures to increase the operationalefciency o light- and heavy-duty vehicles, such as eco-driving, area central component o initiatives to improve energy efciency andreduce CO2 emissions.

Governments should adopt a range o measures to improve vehicleoperational efciency, including:

z Making eco-driving a required element o driver training.

z Requiring manuacturers to provide in-car eedback instruments innew cars.

20 Transport system efciency

Governments should enable policies that increase the overall energyefciency o national, regional and local transport systems andpromote shits o passengers and reight to more efcient modes.

To achieve these objectives, government should adopt transportpolicies that ensure:

z Users pay the economic, environmental and energy security-related

costs o the transport system.z The transport inrastructure is built and maintained to support

the most energy efcient, economically efcient and environmentallybenign transport modes.

z Urban and commercial development planning takes into accountthe likely implications or transport and energy demand.

Transport


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FOR MORE INFORMATIONwww.iea.org/efciency

Contact: [email protected]

INTERNATIONAL ENERGY AGENCY

9 rue de la Fdration, 75739 Paris Cedex 15, France

www.iea.org

Energy utilities can play an important role in promotingenergy efciency.

25 Energy utilities and end-use energy efciency

Governments should establish regulatory and other policies to ensurethat energy utilities support cost-eective, verifable end-use energyefciency improvements.

Governments should:

z Ensure that verifable energy efciency options are allowed tocompete directly with energy supply options in resource procurementand wholesale markets.

z Oblige the appropriate energy sector entity (e.g. regulated utility,

competitive retail supplier or third-party entity) to deliver cost-eectiveenergy efciency to end-use consumers.

z Require that energy customers be provided with cost-reectivepricing, supporting inormation and technology necessary orconsumers to better understand and manage energy use.

z Utilise energy taris as a unding mechanism or energy efciency.

An energy utilitys resources, customer access andtechnical know-how means that it is in a unique positionto design and deliver eective low-cost energy savings.Government incentives or utilities to take such energyefciency actions have largely been successul.

Over time, these schemes can deliver sustained energysavings, which result in signifcantly lower energy

intensities among the targeted end-users than non-targeted ones.

Utility schemes oten combine a requirement tomeet energy efciency with the use o market-basedinstruments to enable utilities to trade savingsobligations and to allow competition in the delivery oenergy services towards savings targets.

Through properly structured schemes, utilities canrecover costs and maintain revenues and profts by

sharing the costs and benefts with the fnal consumer.This gives utilities a large incentive to ensure energysavings are delivered at least cost.

Energy

utilities

25 energy efficiency policy- 2011 update

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