Frost: Building Directive Implementation to Result in Reduced GHG Emissions, Greater Energy Efficiency

October 31, 2007 // Published as a news service by IHS

Recent analysis from Frost & Sullivan of the European green buildings market found that applying more stringent standards to new buildings and to renovations can help reduce greenhouse gas (GHG) emissions and realize an energy-saving potential of more than 20% by 2020.

This will represent a considerable contribution toward meeting the Kyoto Protocol targets.

"Undoubtedly, the future is in more energy-efficient buildings and the EU is working hard to make all buildings green," said Frost & Sullivan industry analyst Reka Szanto.

Despite all efforts to date, European countries in 2006 were still wasting at least 20% of their energy due to inefficiency, with the European building stock contributing significantly to the problem.

Numerous pieces of legislation, policy papers, voluntary agreements, promotional activities, as well as incentive schemes published or supported by the European Commission (EC), called for major reductions in GHG emissions and emphasized the importance of increased energy efficiency. Analysts said all these efforts will prove to be in vain if they are not coupled with increased consumer awareness and behavioral change.

The Directive on the Energy Performance of Buildings (EPBD), which came into force in January 2003, as well as other European initiatives on the subject, will have an impact on the building technologies, products and services market in the medium to long term.

While there are some uncertainties at present, analysts said there is a promising opportunity for industry participants - from consultants to building control manufacturers and technology companies - to contribute to a more energy-efficient, greener building stock in Europe.

Unfortunately, analysts said the Energy Performance Certificate, which is required by the Building Directive when a building is built, sold or rented, only provides information on a building's energy efficiency, but does not require any action to be taken. Therefore, the real challenge is to achieve a positive market response, which means that actions will follow the outcome of an energy audit.

"While it will take time to positively influence people and their attitude toward energy efficiency, there are several tools available to achieve this, including incentive schemes and information campaigns," said Szanto. "Overall, given the rising energy prices and the issues surrounding energy security, the legislation is most likely to achieve its goals in the medium to long term."

Although there have been delays and various difficulties related to implementation, analysts said the Building Directive has a huge potential in energy conservation. Member states should make good use of the EPBD, which will encourage the widespread uptake of environmentally friendly products, technologies and services.

Source: Frost & Sullivan.