ESMAP Efficient and

Sustainable Buildings

Program

Green Buildings Day at the Annual Meetings

Washington, DC

October 16, 2017

Martina Bosi, Sr. Energy Specialist

ESMAP, World Bank

High energy demand

of world energy and 55% of electricity

Ample room to improve access to finance

with no access to

formal housing

finance products

Rapid urbanization

countries will double

their urban

populations

in the next 25 years

Growing middle class

billion consumers

expected to join global

middle class by 2030

bringing it to 5 billion

Large impact on growth

& employment

jobs created per

housing unit built

High impact

on

disposable

income

of disposable

income of low

income

households

goes to pay

utility bills

Growth of Cities

Cities of +0.5m

population in

2030, (564 cities

in 1990)

High GHG impact

of world’s GHG

emissions are

from buildings.

There are many reasons for dedicated

program targeting building sector

Wasted potential

of

economically

viable energy

savings in

buildings is

untapped

Energy &

economics

Urbanization

Climate Change

Rapid increase in floor space in developing countries

of growth to 2050 will

occur in non-OECD

countries

Sources: IFC, IEA, WB

EFFICIENT AND SUSTAINABLE BUILDINGS ARE THE LARGEST

INVESTMENT OPPORTUNITY FOR SUSTAINABLE CITIES AND

CLIMATE MITIGATION

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CONTEXT

20%

40%

60%

80%

100%

Industry Transport Powergeneration

Buildings

Renewables8%

Transmission &

Distribution 2%

Industrial EE1%

Buildings72%

Transport

16%

Waste1%

OPPORTUNITY: $16 trillion investment potential

CHALLENGE: Only 20% of economic potential utilized

Analysis of $24 trillion climate investment opportunity in 21 emerging markets

Source: IFC Climate Investment Opportunity Report

Energy efficiency potential left unused in new policies scenarioSource: IEA World Energy Outlook

Avoid lock-in of inefficient, expensive and

polluting development

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Construction &

renovation

▪ Urban form impacts energy use: housing location,

infrastructure density, interconnectedness of urban city

infrastructure

▪ Particularly important for cities in developing countries

with high projected urbanization growth, e.g., in Sub-

Saharan Africa and Asia

▪ Construction of new buildings without adequate

energy efficiency or renewable energy

considerations will cause high energy consumption

and/or expensive retrofits in the future

▪ Building renovations and equipment investments

also offer critical opportunities for improving energy

efficiency.

Urban planning

Buildings sector can have long-lasting impact on development path

Energy efficiency, and energy efficient buildings

offer multiple benefits

4

Source: IEA

ESMAP objective: help countries harness their EE potential to meet

energy (security, affordability, reliability), development and climate

change goals, as well as capture multiple benefits

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Buildings-related aspects considered

How

buildings are

constructed

How

buildings are

renovated

How

buildings use

energy

Where

buildings are

located

Modality

Technical assistance and pipeline development

▪ Technical assistance through World Bank teams

▪ Piloting of innovative solutions

▪ Mobilization of financing for World Bank clients

Knowledge development and experience

sharing

▪ Knowledge products

▪ Global knowledge exchange and training

ESMAP supports technical assistance over entire

project cycle

• Support activities carried out by WBG teams

• Examples of activities supported:

(i) energy diagnostics and audits;

(ii) pre-feasibility studies;

(iii) assessments and roadmaps

(iv) training and capacity building;

(v) design of implementation mechanisms and

business models;

(vi) input to urban planning (e.g. spatial growth

scenarios)

(vii) advisory services (e.g. on policy, regulatory

and institutional framework).

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Our “Efficient and Sustainable Buildings”

program supports activities around the globe

Ivory Coast

Urban Density and

Quality Buildings for an

Energy Efficient Abidjan

Kazakhstan

EE Transformation in

Astana and Almaty

Mongolia

Efficient Heating Project

Western Balkans

Financing of Public

Buildings

India

Strategic Options for EE

Scale-up and Support to

Key Sectors

Panama

Towards an Effective

Implementation of EE

Initiatives

ESMAP supported technical assistance activities

Argentina

Efficient and Sustainable

Urban Settlements

Kyrgyzstan

EE in Public Buildings

China and Nigeria

EDGE – Certification for

Existing Buildings

Philippines

Improving EE in Public

Buildings

Kyrgyzstan

Enhancing EE of

Education Facilities

Chile

Local Action to Support

Chile's NDC

Achievement

Montenegro

Sustainable EE

Financing for Public

Buildings

Indonesia

Scaling up EE in

Indonesia

Mexico

Improving EE in Schools

and Hospitals

Marshall Islands

Promotion of EE

Program

Georgia

Tbilisi EE Enhancement

for Urban Regeneration

Mongolia

Energy Asset Rating for

Mongolian Buildings

Jordan

Designing a Program for

EE Improvement in

Residential Buildings

Vietnam

Improving EE in Vietnam

Africa (Ghana, Zambia,

Botswana, Gambia)

EE Investment

Opportunities in Africa

Activities under consideration for the current FYOngoing activities

• v

• v

Relevant resources and knowledge products

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Available from ESMAP website (www.esmap.org)

• Synergies between rooftop solar PV and EE investments in built

environment (Livewire; fall 2017)

• Gender Inclusion and Behavior Change in EE Programs (late 2017)

• Practitioner’s Guide

• Study on Use of Auction Model to Catalyze Energy and Resource

Efficient Buildings (soon)

• A cross GP/WBG effort: Climate Change CCSA, ESMAP/EEX,

IFC EDGE, GSURR

• Tool for Rapid Assessment of City Energy (TRACE) – version 2.0

available later in 2017

• includes enhanced modules on buildings

• E-Learning course on Energy Efficiency in Cities

• Several modules

• Mayoral Guidance Notes on Energy Efficiency in Cities

• Includes Improving Energy Efficiency in Buildings

• Assessing and Measuring the Performance of Energy Efficiency

Projects (July 2017)

• Review of global experience with M&V of EE and emerging

field of multiple benefits of EE

Study on Use of Climate Auction Model to Catalyze Energy and

Resource Efficient Buildings - background

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A cross WBG effort: Climate Change CCSA (lead), ESMAP/EEX, IFC EDGE, GSURR

•Origin: Pilot Auction Facility (PAF) focused on Methane and Climate

Change Mitigation;

•Innovative climate finance model

•Housed in the WB Climate and Carbon Finance Unit, and

supported by teams across WBG, incl. IFC Integrity Risk Division

and WB Treasury

Key elements of PAF’s climate auction model:

1) price guarantees for emission reductions – PAF only disburses funds

once the emission reductions have been third-party verified.

2) an auction platform: transparent means for allocating and

determining the value of the price guarantees.

•Explore opportunity of combining the PAF climate auction model

with EDGE voluntary certification

• Catalyze green building sector in developing countries and help

avoid lock-in to energy inefficient, polluting, & expensive

assets.

•EDGE certification (and other deemed equivalent) would

provide metric against which to disburse funds

Step-by-Step Process

Contributors Fund Facility

Set Criteria

Publicize Auction

Pre-Auction

Auction PurchaseContracts

Source m2 Deliverproof of m2

Certification Audits

Apply Qualify forAuction

Payouts

Example: Bidder Perspective

climate auction model to catalyze energy and

resource efficient buildings: from concept to

piloting

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Thank you.

mbosi@worldbank.org