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© OECD/IEA 2018 Energy efficiency in buildings & the Efficient World Scenario Dave Turk, Head of Strategic Initiatives [email protected] and www.iea.org/buildings IEA

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Page 1: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

Energy efficiency in buildings & the Efficient World Scenario Dave Turk, Head of Strategic Initiatives [email protected] and www.iea.org/buildings

IEA

Page 2: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

Power sector decarbonisation and enhanced energy efficiency in buildings have helped to stabilise the influences of population and floor area growth on buildings sector emissions.

Global buildings sector energy‐related emissions, energy and indicators, 2010‐17

The buildings sector is growing, but efficiency and renewables limit the impact

-5%

0%

5%

10%

15%

20%

2010 2011 2012 2013 2014 2015 2016 2017

Floor area

Population

Energy

Emissions

Page 3: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

IEA’s new Efficient World Scenario

The world is missing opportunities to improve energy efficiency and policy is not delivering the full potential gains that are available with current technology.

• What is possible with greater efforts on energy efficiency?

• The IEA’s new Efficient World Scenario answers the question:

What would happen by 2040 if countries realised all the economically viable energy efficiency potential that is available today?

The Economy The Energy System The Environment

Source: IEA Energy Efficiency 2018

Page 4: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

There is significant cost-effective savings potential in every sector

Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised in current policies and NDC commitments (New Policies Scenario).

Cumulative energy savings in NPS and additional potential in the EWS to 2040

0

100

200

300

400

500

600

Industry Transport Buildings

EJ

Efficient World Scenario

New Policies Scenario

Page 5: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

Markets are not keeping up with energy efficiency potential

The average efficiency of air conditioners sold today is less than half of what is typically available on shelves – and one third of best available technology.

Energy performance of air conditioners already available in markets today

0

2

4

6

8

10

12

14

Europe Japan Korea China UnitedStates

Singapore Canada Australia Thailand India Saudi Arabia

SEER

(W/W

)

Available equipment Market average

Source: IEA The Future of Cooling 2018

Page 6: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

Access to cooling is a critical issue in some of the hottest places

There are around 2.8 billion people living in places where it is hot every single day. Only 8% of them have an air conditioner today.

Mean annual cooling degree days around the world, 2007-2017

Source: IEA The Future of Cooling 2018

Page 7: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

Efficient World Scenario: Buildings could be 40% more efficient

What is possible by 2040? Key policy actions

• Building space could increase by 60% for no additional energy use.

• Space heating, space cooling and water heating offer 60% of savings.

• Comprehensive efficiency regulations, targeting both new and existing building stock and appliances.

• Incentives to encourage consumers to adopt high efficiency appliances and undertake deep energy retrofits.

• Improved quality and availability of energy performance information and tools.

Page 8: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

To achieve the Efficient World Scenario, cost effective incremental investment would need to increase to over USD 200 billion in the coming years and to over 300 billion out to 2040.

Average annual energy efficiency investment in buildings, 2017‐40

New policies are required to push buildings investment higher

0

100

200

300

400

2017 2017-25 2026-40

USD

(201

7) bi

llions

Current New Policies Scenario Efficient World Scenario

Page 9: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

Energy as a share of total household expenditure is rising, but it is less thanks to efficiency. To 2040, households can avoid over USD 550 billion in the Efficient World Scenario.

Average household savings per capita on energy expenditure in 2017 due to efficiency gains since 2000

Household energy expenditure has been avoided

0%

10%

20%

30%

40%

0

100

200

300

400

Germany Japan United Kingdom France United States Mexico

USD

2017

PPP

Non-transport Transport Savings as a % of energy bill in 2017 (right axis)

Page 10: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

GlobalABC 2018 Global Status Report

• Latest IEA analysis of the buildings sector

• Examines the status of: ‐ Nationally Determined Contributions (NDCs) ‐ Building codes and standard ‐ Buildings certification ‐ Investment in the buildings sector

• Examines progress achieved in key themes: ‐ Human factors ‐ Technology solutions ‐ Architectural solutions ‐ Material solutions

‐ Resilient buildings ‐ Urban solutions ‐ Clean energy transition ‐ Circular economy

Page 11: Energy efficiency in buildings and the Efficient World ...€¦ · Only one third of the cost-effective potential cumulative energy savings in the Efficient World Scenario are realised

© OECD/IEA 2018

www.iea.org IEA

[email protected] and www.iea.org/buildings