Professional Documents
Culture Documents
Module 03
Presentation Script
Presentation Script
This
lesson
focuses
on
energy
efficiency.
We
will
first
identify
potential
for
profitable
energy
efficiency
improvements
around
the
world
and
the
market
barriers
that
require
government
intervention
to
overcome
them.
We
then
discuss
national
target
setting
and
some
regulatory
policy
instruments
that
can
help
achieve
energy
efficiency
improvements,
paying
special
attention
to
Building
Energy
Codes.
Finally,
well
discuss
complementary
policies.
Other
types
of
policy
instruments
will
be
addressed
in
lesson
2.
Page 1 of 36
Presentation Script
Global
energy
demand
will
grow
at
an
annual
rate
of
more
than
2%.
Most
of
this
growth
will
originate
in
large
developing
countries,
such
as
China
and
India.
However,
profitable
investments
in
existing
technologies
can
substantially
offset
this
increase
in
demand,
cutting
global
energy
demand
growth
from
2.2%
down
to
0.7%.
These
savings
would
be
equivalent
to
64
million
barrels
of
oil
per
day.
Lets
look
at
how
these
opportunities
spread
across
sectors
of
the
global
economy.
In
the
residential
sector,
there
is
profitable
and
accessible
potential
to
save
the
equivalent
of
15
million
barrels
of
oil
per
day.
Both
the
commercial
sector
and
the
transportation
sector
offer
savings
of
equivalent
to
about
6
millions
barrels
of
oil
per
day.
Industrial
energy
efficiency
improvements
host
potential
savings
of
between
20
and
29
million
barrels
Page 2 of 36
Presentation Script
per
day.
Lastly,
in
the
power
generation
and
refining
sectors,
there
is
profitable
potential
to
save
the
equivalent
of
12
million
barrels
of
oil
per
day.
Why
arent
these
opportunities
captured?
Presentation Script
A
first
step
in
policy
making
can
be
to
set
Energy
Efficiency
Targets.
Setting
a
national
energy-efficiency
target
can
set
a
direction
for
a
countrys
energy
future
and
be
an
effective
tool
for
increasing
awareness
of
energy
efficiency
and
energy-efficiency
policies,
for
building
political
and
public
consensus
around
the
countrys
energy
future,
and
for
mobilizing
stakeholders
to
participate
in
policy
instruments
deployed
to
achieve
the
target.
Page 4 of 36
Presentation Script
Targets
can
be
national,
sub-national
or
sectoral,
and
they
can
be
expressed
in
many
ways.
For
example,
the
most
prevalent
targets
specify
a
rate
of
energy
savings
for
a
period
of
time.
Alternatively,
a
target
can
specify
a
volume
of
energy
savings.
Lastly,
targets
are
sometimes
expressed
as
a
rate
of
decrease
in
energy
intensity.
Page 5 of 36
Presentation Script
How
should
policymakers
determine
appropriate
targets?
And
what
steps
can
be
taken
to
facilitate
progress
toward
targets?
The
first
step
to
determining
energy-efficiency
targets
is
establishing
a
target-
setting
process
underpinned
by
analysis
and
reliant
upon
consultation
with
experts,
stakeholders,
and
implementing
agencies.
A
good
target
also
will
balance
stringency
with
achievability,
be
expressed
in
units
that
lend
themselves
to
simple
monitoring
using
existing
data-collection
infrastructure,
and
avoid
overlapping
or
competing
targets.
For
example,
emissions
targets
should
complement
EE
targets.
Before
targets
are
announced,
its
important
to
ensure
that
enabling
frameworks
are
in
place
to
support
and
monitor
progress.
Its
also
important
to
adequately
resource
implementing
agencies
and
government
programs
Page 6 of 36
Presentation Script
Once
energy
efficiency
targets
have
been
set,
governments
have
several
policy
options
to
facilitate
cost-effective
energy-efficiency
improvements.
Policy
instruments
can
be
categorized
as
information
and
communication
measures,
regulatory
instruments,
and
market-based
instruments.
The
remainder
of
this
lesson
focuses
on
regulatory
instruments
and
lesson
2
covers
the
other
instruments.
Page 7 of 36
Presentation Script
Regulatory
Instruments
These
are
the
four
topics
we
will
address
in
our
discussion
of
regulatory
instruments.
Click
each
instrument
to
learn
more
Page 8 of 36
Presentation Script
Page 9 of 36
Presentation Script
Regulations
for
Designated
Consumers
Regulations
for
designated
consumers
are
a
way
for
government
to
mandate
that
large
energy
consumers
take
steps
to
understand,
monitor,
and
plan
their
energy
use.
Consumers
may
be
designated
by
a
consumption
threshold
or
by
sector.
Regulations
for
designated
consumers
are
process-oriented
and
readily
complement
other
energy-efficiency
programs
that
provide
incentives
to
carry-out
energy-efficient
investment.
Examples
of
common
mandated
practices
for
designated
consumers
include
energy
audits,
energy
consumption
reporting,
the
appointment
of
an
energy
manager,
and
energy
savings
plans.
These
four
regulations
may
be
implemented
as
stand-alone
approaches
or
as
part
of
a
comprehensive
package.
Take
a
moment
to
click
on
each
option
for
more
information.
Page 10 of 36
Presentation Script
Regulations
for
the
Public
Sector
In
many
developing
countries,
the
private
sector
often
has
much
greater
financial
capacity
than
the
public
sector
to
take
the
lead
in
energy
efficiency
initiatives.
However,
through
public-sector
regulations,
governments
can
establish
credibility
and
bring
awareness
to
energy
efficiency,
as
well
as
build
governmental
capacity
to
understand
and
manage
energy-efficiency
programs.
There
are
a
range
of
viable,
short-term,
cost-effective
regulations
that
can
save
government
resources
and
deliver
co-benefits.
Page 11 of 36
Presentation Script
Presentation Script
Buildings
consume
more
energy
than
any
other
sector
of
the
global
economy.
Globally,
buildings
constitute
34%
of
global
final
energy
consumption,
which
is
more
than
industry
and
transport.
The
IEA
projects
global
building
energy
consumption
to
grow
30%
by
2030.
Most
of
that
growth
will
originate
in
developing
countries,
where
the
urban
building
stock
is
expected
to
more
than
double
by
2030.
In
India,
75%
of
buildings
expected
to
exist
in
2030
have
yet
to
be
built.
Page 13 of 36
Presentation Script
However,
opportunities
available
with
existing
technologies
could
deliver
30%
energy
savings
in
the
building
sector
by
2030.
The
chart
breaks
down
life-cycle
energy
use
in
residential
buildings.
The
overwhelming
share
of
energy
use
comes
from
powering
the
buildings
systems
for
its
lifetime.
To
avoid
locking-in
these
costs
for
the
30-
or
40-year
lifetime
of
new
buildings,
it
is
especially
critical
for
developing
countries
to
take
advantage
of
cost-effective,
energy-efficiency
opportunities
in
new-
building
construction.
Building
Energy
Codes
Building
energy
codes
are
intended
to
establish
progressive
standards
for
building
practices,
to
encourage
market
innovation,
and
to
achieve
compliance
through
the
supply
of
effective
enforcement.
Page 14 of 36
Presentation Script
In
this
section,
you
will
review
three
aspects
of
building
energy
codes:
technical
requirements,
issues
concerning
compliance
and
enforcement,
and
complementary
policies
which
may
serve
as
compliance
tools.
Click
each
aspect
to
learn
more.
Technical
Requirements
Maximizing
the
technical
requirements
of
building
energy
codes
typically
include
these
issues.
Click
each
option
to
learn
more.
Page 15 of 36
Presentation Script
Technical
Requirements
Building
energy
codes
target
energy-efficiency
improvements
that
reduce
energy
consumption
in
buildings.
First,
improvement
can
be
made
by
reducing
the
energy
demand,
or
the
load,
which
includes
reducing
space
heating,
space
cooling,
and
lighting
loads.
Second,
using
efficient
systems
to
serve
the
load
can
save
energy,
including
enhancing
the
energy-efficiency
of
space
heating,
space
cooling,
ventilation,
water
heating,
appliances,
and
lighting.
Page 16 of 36
Presentation Script
The
building
envelope
is
the
chief
subject
of
most
energy
codes.
It
includes
all
the
components
of
a
building
which
enclose
heated
or
cooled
spaces.
Many
codes
specify
a
maximum
level
of
heat
transparency
allowed
for
the
building
envelope.
Heating,
ventilation,
and
air
conditioning,
or
HVAC
systems,
govern
a
buildings
indoor
climate.
Energy
codes
typically
regulate
the
overall
efficiency
or
component
efficiencies
of
HVAC
systems,
although
the
demand
for
heating
and
cooling
depends
on
the
efficiency
of
the
envelope.
Page 17 of 36
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First,
identifying
and
comparing
relevant
examples
from
other
locations.
Second,
collecting
information
about
the
building
stock
to
determine
typical
base-case
buildings
that
can
be
used
as
benchmarks
for
developing
and
evaluating
code
requirements.
Third,
using
detailed
analyses,
including
computer
simulations,
to
understand
the
energy
savings
and
cost-effectiveness
of
proposed
code
requirements
on
base-case
buildings.
Fourth,
code
drafting
with
technical
detail,
explicit
standards,
compliance
forms,
and
compliance
options.
And
fifth,
conducting
public
reviews
with
stakeholders.
This
development
process
for
building
energy
codes
may
be
a
good
opportunity
to
build
domestic
capacity
through
international
partnerships.
Technical
Requirements
Page 21 of 36
Presentation Script
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Compliance
&
Enforcement
Page 23 of 36
Presentation Script
Building
energy
codes
achieve
little
if
builders
neglect,
fail,
or
decide
not
to
comply.
Governments
have
several
choices
to
make
that
can
help
prompt
broad-based
compliance,
starting
with
the
legal
nature
of
the
energy
code.
Click
each
option
to
learn
more.
Compliance
&
Enforcement
Page 24 of 36
Presentation Script
Page 25 of 36
Presentation Script
Code
implementation,
like
development,
is
an
elaborate
process
with
many
key
components
and
players.
Several
key
components
to
successful
implementation
of
building
energy
codes
are
shown
here.
Compliance
&
Enforcement
Page 26 of 36
Presentation Script
Here
are
four
best-practice
considerations
with
respect
to
compliance
and
enforcement.
First,
mandatory
compliance
is
the
only
approach
available
to
realistically
set
a
baseline
for
energy
efficiency
in
new
construction.
Second,
enforcement
procedures
are
most
effective
if
extended
from
design
reviews,
which
facilitate
low-cost
corrections,
to
site
inspections
that
check
for
quality
of
installation
and
follow-through
on
compliant
designs.
Thorough
enforcement
requires
training
for
code
inspectors
and
tools
for
demonstrating
compliance.
Hover
over
the
Example
from
Singapore
to
learn
more.
Third,
enforcement
procedures
should
be
backed
up
with
real
penalties
for
non-compliance.
Fourth,
compliance
must
be
tracked
to
isolate
problems
and
make
improvements
to
the
code
and
enforcement
practices.
Hover
over
the
Example
from
China
to
learn
more.
Page 27 of 36
Presentation Script
Complementary
Policies
Building
energy
codes
do
not
affect
demand
for
energy-efficient
buildings
or
encourage
the
supply
chain
to
do
more
than
is
necessary
to
comply
with
minimum
requirements.
Complementary
instruments
serve
three
purposes
all
of
which
offer
direct
or
indirect
financial
benefit.
First,
they
can
encourage
commercial
deployment
and
market
recognition
of
energy-efficiency
innovations
that
surpass
building-code
requirements.
Second,
they
can
help
overcome
the
resistance
to
change
in
nascent
markets
due
to
lack
of
experience
with
new
designs,
technologies,
and
materials.
Third,
complementary
policies
may
mitigate
the
financial
risks
associated
with
the
higher
construction
costs
incurred
to
comply
with
the
building
energy
code.
Click
each
option
to
learn
more.
Page 28 of 36
Presentation Script
Complementary
Policies
Energy-efficiency
certification
and
rating
systems
for
buildings
and
building
components
are
very
useful
informational
instruments
to
assist
with
compliance.
Certifications
or
ratings
can
be
tied
directly
to
a
compliance
pathway
by,
for
example,
requiring
that
buildings
or
components
achieve
a
minimal
energy
rating.
This
arrangement
makes
the
compliance
tasks
of
designers,
builders,
and
inspectors
very
straightforward.
Certifications
and
rating
systems
also
provide
information
to
the
public
and
offer
recognition
and
marketing
benefits
for
achieving
efficiency
beyond
whats
required
in
the
building
energy
code.
Complementary
Policies
Page 29 of 36
Presentation Script
Economic
incentives,
such
as
grants
and
subsidized
loans,
and
fiscal
incentives,
such
as
tax
benefits,
are
both
compliance
tools.
They
are
especially
effective
at
encouraging
efficiency
achievements
above
the
code
minimum
and
at
encouraging
the
adoption
and
demonstration
of
voluntary
building
energy
codes.
Complementary
Policies
Page 30 of 36
Presentation Script
Another
option
for
enticing
compliance
with
voluntary
codes,
or
for
encouraging
firms
to
reach
for
efficiency
improvements
beyond
the
code,
is
to
offer
special
treatment
under
regulation,
such
as
expedited
permits
or
exemptions
from
zoning
regulations.
Status
of
Building
Energy
Codes
in
Low-
or
Middle-Income
Countries
Page 31 of 36
Presentation Script
This
table
shows
the
regional
status
of
building
energy
codes
in
low
and
middle
income
countries
around
the
world.
There
is
substantial
activity
in
the
development
of
building
energy
codes,
but
still
a
notable
lack
of
implementation
and/or
compliance.
Challenges
for
Developing
Countries
Page 32 of 36
Presentation Script
Building
energy
codes
are
more
likely
to
succeed
in
countries
and
localities
that
meet
certain
conditions.
First,
government
oversight
of
the
construction
sector
should
be
well
established
for
enforcement
of
general
building
codes
for
safety
and
quality.
Second,
the
building
supply
chain
should
have
established
technical
and
engineering
capacity.
Third,
the
market
for
commercially
produced
buildings
should
be
well
developed.
Fourth,
there
should
be
political
will
to
achieve
energy-efficiency
improvements.
Creating
those
conditions
is
the
challenge
for
developing
countries.
Hover
over
each
short
example
from
China
and
Mexico
to
learn
more.
Key
Messages
Page 33 of 36
Presentation Script
This
lesson
should
have
conveyed
these
six
takeaway
messages:
First,
energy-efficiency
is
a
tremendous
opportunity,
especially
in
the
buildings
sector
and
in
low-income
and
emerging
economies.
Cost
savings
can
go
towards
productive
spending
and
investment.
Second,
government
policies
are
needed
to
overcome
failures
and
barriers.
Third,
among
such
government
policies,
regulatory
instruments
are
important,
and
building
energy
codes
are
the
most
important.
Fourth,
many
of
the
complex
decisions
required
to
develop
and
implement
regulations
are
informed
by
the
current
oversight
and
enforcement
capacity
of
the
government.
Fifth,
complementary
policies
can
entice
compliance.
Page 34 of 36
Presentation Script
Visit
these
links
for
more
information
on
regulatory
instruments
for
promoting
energy
efficiency.
Page 35 of 36
Presentation Script
Key
References
No
audio.
Page 36 of 36