Assessment of policy instruments for reducing GHG from buildings

Commercial and domestic buildings account for about 33% of all energy-related CO2 emissions worldwide (IPCC 2007). According to research carried out by the Central European University for the Intergovernmental Panel on Climate Change approximately 30% of this energy consumption can be saved at a net benefit for society (IPCC 2007). However, this significant economic potential is not realized due to numerous barriers such as hidden costs and benefits, distorted energy pricing, imperfect information, market failures and misplaced incentives. For this reason, more and more countries apply a variety of policy instruments such as building codes, energy efficiency obligations, subsidies and information campaigns.

Since these instruments differ considerably in terms of their effects and costs, the research project aims at assessing the most commonly used policy instruments introduced to cut GHG emissions in buildings, according to their environmental effectiveness and cost-effectiveness as well as factors for success. The assessment is based on evaluations of implemented policy instruments, and now includes over 80 case studies from over 50 countries.

The project started under the framework of the work by the department for the Nobel Peace Price winning Fourth Assessment Report of the Intergovernmental Panel on Climate Change , and was further funded by the UNEP Sustainable Buildings and Construction Initiative (UNEP-SBCI). The final output of the first part of the project is a report published by UNEP and CEU in September 2007 as well as a short brochure summarizing the results and a database. The second part of the project consists of creating a Qucik-scan tool.

The Quick-scan tool assists decision makers in identifying their policy goals (in this way also assisting in pairing energy efficiency measures with priority areas of the government), identifying the barriers that the government faces related to implementation of these measures, and the specific characteristics of the relevant jurisdiction/state/country that is related to energy efficiency policies.