The Quick Scan tool has been created with the aim to assist decision makers in reducing greenhouse gas emissions from buildings through designing policy packages that are best suitable for their specific locations.
The Quick Scan tool takes the user through a process from determining the policy goals and focus area through identification of barriers and characteristics of the policy environment to recommendations on important aspects of creating policy packages that contribute to reducing greenhouse gas emissions from the buildings sector.
As an output the tool provides recommendations and four proposed policy packages. The creation of the proposed packages is based on the information that the user provided through answering questions in each section. Choosing between the proposed packages is up to the user and requires further in-depth inter-sectoral analysis of implications at the specific location. A consultation process with relevant stakeholders (for example from the business and research community as well as civil organizations) is also advised.
The completion of the sections in some cases requires specific information and detailed knowledge of energy use characteristics and functioning of already deployed policy instruments at the specific locations. Therefore it is advised that users/decision makers review the questions and gather the required information before completing the sections, and use the Quick Scan Tool with the assistance of an energy efficiency/energy specialist/engineer.
Guidelines for use: the questionnaire should be filled in by first completing section 1, followed by sections 2, 3a, 3b and 3c, and finishing by completing section 4. Once you have completed a section click on “Next” in the upper right corner of the page. This will allow you to proceed to the next section. Please only click “Next” after you have answered all the questions in the relevant section. You can review and modify previous sections by clicking on “Previous” in the upper left corner of the page.
After completing section 4 you can proceed to “Results”. After this there is no possibility for modification. The “Results” page lists the proposed policy packages followed by a list of recommendations that should be considered when energy efficiency policies are introduced. You can navigate between sections 1, 2, 3a, 3b and 3c and 4 only by clicking on “Previous” and “Next”.
While completing the questionnaire you can visit the “Policy Instrument Definition” and the “Resources” sections to assist your work, but must go back to the same section of the questionnaire that you navigated away from.
Climate change is the most important challenge facing the world today. Significant harm from climate change is already occurring, and further damages are a certainty (SEG, 2007). Furthermore, it is likely that anthropogenic activity has been influencing warming on the global scale (IPCC, 2007). Prompt, substantial action against climate change is crucial, at the same time it is a complex environmental phenomenon affecting a broad range of economic sectors, which poses a substantial amount of difficulties to overcome.
According to the Intergovernmental Panel on Climate Change the buildings sector has the highest potential for cost-effective greenhouse gas mitigation. Approximately one third of greenhouse gas emissions from buildings can be saved at a net benefit to society (IPCC, 2007). However, this substantial potential is not realized due to numerous barriers such as misplaced incentives, financial and structural barriers and market failures. Various policy instruments such as building codes, subsidies and information campaigns are applied by governments worldwide to overcome these barriers.
The aim of the Quick Scan Tool is to assist decision makers in various countries, on various levels of government (local, regional, state, provincial, national, etc.) to create packages consisting of policy instruments that contribute to reducing greenhouse gas emissions from buildings.
The Quick Scan Tool has been created as the second phase of the project carried out by the Center for Climate Change and Sustainable Energy Policy (3CSEP) at the Central European University for UNEP SBCI. The fist phase of the project consisted of creating the report Assessment of Policy Instruments for Reducing Greenhouse Gas Emissions from Buildings (Koeppel and Ürge-Vorsatz, 2007) on world experience of effective and cost-effective policies for energy efficiency improvements in the buildings sector.
Before starting to complete the questionnaire, please read the Introduction and Background sections.
This section helps to gather the most important aspects of the policy environment where the policies for reducing greenhouse gas emissions from buildings are to be implemented. There are three parts to step 3.
In the first part the characteristics of the regulatory and economic environment will be explored, while in the second part the characteristics of the energy sector will be gathered. The third part deals with capacity and resources at the relevant government level, as well as with already existing policy instruments for reducing greenhouse gas emissions from buildings.
Below you can find the definitions of policy instruments reviewed according to their effectiveness and cost-effectiveness in the report “Assessment of Policy Instruments for Reducing Greenhouse Gas Emissions from Buildings”. (To access the report, please click here). Since the success of these instruments faces a significant number of barriers and no single policy instrument can overcome all barriers, it has been recognized that there is a need to create policy packages consisting of several different policy instruments. The Quick Scan Tool assists policy makers to create such policy packages.
Policy instruments are grouped into four main instrument groups: 1. Control and regulatory instruments 2. Economic and market-based instruments 3. Fiscal instruments and incentives 4. Support, information and voluntary action
The instrument groups can be defined as the following:
Economic and market-based instruments: economic instruments for energy efficiency improvements are based on market mechanisms and usually contain elements of voluntary action or participation, which are often initiated or promoted by regulatory incentives.
Fiscal instruments and incentives: fiscal instruments and incentives can be defined as policy tools which influence energy prices either by imposing a Pigouvian tax (a tax levied in order to correct negative externalities of a market activity such as environmental pollution due to industrial activities) aimed at reducing energy consumption or by financial support if first-cost related barriers are addressed.
Support, information and voluntary action: these instruments aim at persuading consumers to change their behaviour by providing information and examples of successful implementation.
In the following definitions will be provided for each of the policy instruments, followed by a list of factors that contribute to their successful application.
Appliance standards: they define a minimum energy efficiency level to be fulfilled by the producer for a particular product category such as refrigerators. Success factors: regular update, clear communication, provision of quality testing.
Building codes: minimum standards which address the energy use of an entire building, or building systems such as heating or air conditioning. Success factors: regular update, adaptation to local context, training and capacity building, demonstration programs.
Procurement regulations: provisions for energy efficiency in the public procurement process. Success factors: ambitious energy efficiency specification and regular updates, immediate need (such as energy shortage or high energy prices), high-level political commitment, energy-efficiency labeling and testing, beginning with simple measures, supporting legal framework and reliance on other policy instruments i.e. labeling.
Energy efficiency obligations and quotas (EEOs): requirement for example for electricity and gas suppliers to achieve targets for the promotion of improvements in energy efficiency for instance in households. Success factors: regular updates, new energy efficiency measures, government deciding on target.
Mandatory labeling programs: mandatory provision of information to end users about the energy-using performance of products such as electrical appliances and equipment, as well as buildings. Success factors: information and training, use by major economic agents as marketing tool, use as basis for reporting and specifying performance, open-ended labeling, regular revision and updates.
Utility demand-side management programs: planning, implementing and monitoring activities of energy efficiency programs among/by utilities. Success factors: combination with regulatory incentives, adaptation to local needs and market research, clear objectives, focus on skills and pilot programs first, strong leadership.
Energy performance contracting (EPC)/ Energy Service Company (ESCO) support: a contractor, typically an Energy Service Company (ESCO) guarantees certain energy savings for a location over a specified period; implements the appropriate energy efficiency improvements and is paid from the actual energy cost reductions achieved through the energy savings. Success factors: information and demonstration programs, train financial facilities, model contracts, enabling public procurement legislation, guarantee fund, combination with state support schemes.
Cooperative procurement: private sector buyers who procure large quantities of energy-using appliances and equipment work together to define their requirements, invite proposals from manufacturers and suppliers, evaluate the results and buy the products, all in order to achieve a certain efficiency improvement in products equal or even superior to world best practice. Success factors: long-term market commitment and buyer-relationship, active engagement; positive publicity for winner; combination with standards and labeling; choice of right products with technical and market potential.
Energy efficiency certificate schemes: similar to energy efficiency obligations, but certificates for energy savings can be traded (often referred to as “white certificates”). Success factors: advanced institutional structures are needed, appropriate setting of baseline, good measurement and verification.
Kyoto flexibility mechanisms: Joint Implementation (JI) and Clean Development Mechanism (CDM) – project based mechanisms under the Kyoto Protocol that allow countries with an emission reduction or emission limitation commitment (Annex B Parties to the Protocol) to earn saleable units which contribute towards meeting their Kyoto target. JI projects can be established between Annex B Parties of the Kyoto Protocol (both countries have made an emission reduction or emission limitation commitment), while CDM projects can be established between an Annex B Party and a developing country (the former country has an emission reduction or emission limitation commitment, the latter does not). The host countries of these project based mechanisms are intended to experience technology transfer and foreign investment to achieve sustainable development. Success factors: project bundling, information and awareness campaigns, link to programmatic CDM/GIS (Green Investment Scheme)
Taxation (on CO2 and or household fuels): imposed by government. The effect is to increase the final price that end-users pay for each unit of energy purchased from their supplier, although the tax may be levied at any point in the supply chain. Success factors: levy tax as upstream in supply chain as possible.
Tax exemptions/reductions: reduction of value added tax or income tax when energy efficient products are purchased or investments are made, provides signals to end use customers promoting investment in energy efficiency. Success factors: pay for results according to performance criteria, flexibility in who receives credit, combination with other instruments.
Public benefit charges: raising funds form the operation of the electricity or energy market, which can be directed into demand-side management, efficiency activities. Success factors: involvement of all stakeholders, regular evaluation/monitoring and program changes, team approach with utilities, good communication, simple and clear program design.
Capital subsidies, grants, subsidized loans: financial support for the purchase of energy efficient appliances or buildings. Success factors: don’t use if penetration rate is already high, limit to short period of time and specific target group.
Voluntary certification and labeling: provision of information to end users about the energy using performance of products such as electrical appliances and equipment and buildings. Voluntary for the producer. Success factors: adaptation to local market, low number of manufacturers.
Voluntary and negotiated agreements: involve a formal quantified agreement between a responsible government body and a business or organization which states that the business or organization will carry out specified actions to increase the efficiency of its energy use. Success factors: inclusion of most important manufacturers, clear targets, effective monitoring, involve all stakeholders.
Public leadership programs: energy efficiency programs in public administrations, demonstration projects to show the private sector possible savings that can be achieved by using energy efficiency technologies. Success factors: clearly state, communicate and monitor; adequate funding and staff; involve building managers and experts.
Awareness raising, education, information campaigns: policy instruments designed by government agencies with the intention to change individual behavior, attitudes, values or knowledge. Success factors: deliver credible and understandable message, adaptation to audience.
Mandatory audit programs: mandatory audit and energy management in commercial, industrial or private building, sometimes subsidized by government. Success factors: correct implementation and financing, combination with financial incentives, high energy price, capacity building.
Detailed billing and disclosure programs: display detailed information related to the energy consumption to the user either on the bill and/or directly on the appliance or meter. Success factors: regular evaluation, combination with other mechanisms, comparability with other households.
Training programs: programs to educate professionals (architects, designers, building managers) about possibilities for improving energy efficiency in buildings.
Definitions based on Table 2 of the report “Assessment of Policy Instruments for Reducing Greenhouse Gas Emissions from Buildings” (Koeppel, S., Ürge-Vorsatz, D., 2007, Table 2, p.9). For more detailed description and comparative analysis of the instruments, please consult the report by clicking here.
For further information on policies for reducing greenhouse gas emissions from buildings, mitigation of climate change and the dangers posed by climate change, please consult the following studies that served as the main background material for the UNEP SBCI Quick Scan Tool:
Eto, J. 1996. The Past, Present, and Future of U.S. Utility Demand-Side Management Programs . Lawrence Berkeley National Laboratory. Environmental Energy Technologies Division.[online] URL
IPCC. 2007. Climate Change 2007. Mitigation, Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Metz, B., Davidson, O.R., Bosch, P.R., Dave, R., Meyer, L.A. (eds), Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA, XXX pp. [online] URL
Klinckenber, F., Sunikka, M. 2006. Better Buildings through Energy Efficiency: A Roadmap for Europe. EURIMA. [online] URL
Koeppel, S., Ürge-Vorsatz, D. 2007. Assessment of Policy Instruments for Reducing Greenhouse Gas Emissions from Buildings. United Nations Environment Programme and Central European University. [online] URL
Scientific Expert Group on Climate Change (SEG), 2007. Confronting Climate Change: Avoiding the Unmanageable and Managing the Unavoidable. Report prepared for the United Nations Commission on Sustainable Development. Sigma Xi, Research Triangle Park, NC, and the United Nations Foundation, Washington, DC. [online] URL
World Energy Council. 2008. Energy Efficiency Policies around the World: Review and Evaluation. [online] URL
Center for Climate Change and Sustainable Energy Policy (3CSEP) Central European University Department of Environmental Sciences and Policy H-1051 Budapest, Nador utca 9, Hungary Ph: +36-1-327-3000/3092 Fax: +36-1-328-3412 Web: http://3csep.ceu.hu Dr. Diana Urge-Vorsatz: vorsatzd"at"ceu.hu Veronika Czako: czakov"at"ceu.hu
Sustainable Buildings & Climate Initiative – Secretariat (SCP/SUN) United Nations Environment Programme- DTIE 15 rue de Milan – 75441 Paris cedex 09 – France Phone : +33 1 44 37 76 36 Fax : +33 1 44 37 14 74 e-mail: sbci@unep.org
