This project, “International Review of Residential Building Energy Efficiency Rating Schemes”, is the fifth project in a series of work conducted through the Building Energy Efficiency Task Group (BEET), under the International Partnership for Energy Efficiency Cooperation (IPEEC). This project report presents key governance and administrative considerations in the design of energy efficiency rating schemes, available information on the cost-effectiveness and market impact of rating schemes, barriers to uptake of schemes and lessons learned from the implementation of schemes.

The EU and Australia have instituted significant new public policies to promote energy efficiency in the “built environment.” Many of these public policies were motivated by the same concerns that led to the pioneering voluntary initiatives of Green Building Councils (especially the LEED design certification program) and the U.S. Department of Energy’s ENERGY STAR system for buildings. However, policy initiatives on both continents are relatively new, have been recently modified, and are yet to be finalized.

Energy Poverty (EP) is the inability to attain a socially and materially necessitated level of domestic energy services. In the EU this occurs primarily due to low incomes, poor energy performance of buildings and high energy costs. The impacts of EP range from impaired social lives to unhealthy living conditions, with further consequences in the physical and mental health of energy poor individuals. Member states have been assigned by the EU with the responsibility of dealing with EP within their own territories.

Standards, subsidies, and carbon taxes are among the measures often considered to reduce energy consumption and carbon dioxide (CO₂) emissions in the buildings sector. Using a modeling system developed by the U.S. Energy Information Administration, residential and commercial sector standards and subsidies were each modeled with and without a carbon tax to determine if a multipolicy approach would be redundant. A separate case examining a carbon tax was also completed for comparison.

The Dutch Government stimulates the application of energy efficiency measures to reduce the energy requirements of buildings, which are responsible for about 20% of the Dutch CO2 emissions. For our assessment, we followed a qualitative approach, due to a lack of data. We reviewed the mix of policy instruments and used stakeholder surveys and interviews. We found that energy use is not very likely to decline fast enough to achieve the Dutch policy targets for 2020. For new buildings, the policy mix works well, but its contribution to the policy targets is limited.

Energy efficiency is a complex concept which is represented in diverse fields including engineering, economics, energy, computer sciences, environmental sciences, mathematics and physics. The social sciences literature on energy efficiency, however, remains significantly underrepresented, comprising just 2.6% of the total energy efficiency literature found in this study. Energy efficiency is an important energy policy strategy globally to reduce energy consumption, secure energy supply, and reduce greenhouse gas emissions.

The contribution of buildings to climate change has become widely acknowledged. On 3 December 2015, the United Nations Environment Programme (UNEP) held the first ‘buildings day’ at COP 21 (the UN Climate Change Conference) devoted to the decarbonization of the building stock. There are several forms of negative contributions that buildings make to climate change, but high on the list are embodied and operational energy demands, which largely depend on fossil fuels and result in greenhouse gas emissions.

The National Energy Productivity Plan (NEPP) is a package of measures to improve Australia’s energy productivity by 40% between 2015 and 2030. The NEPP is delivered jointly between the Australian Government and the state and territory governments. Energy Ministers recognised that improving energy productivity helps: businesses reduce their energy costs through innovation and modernising their infrastructure; households benefit through lower energy bills and increased home comfort; Australia reduce its greenhouse emissions.

The main aim of this report is to contribute to the exchange of good practices and to support EU MS by providing potential ideas for the elaboration of long-term renovation plans. The report compiles renovation requirements as well as financial instruments, support programmes and market mechanisms for building renovation in a number of countries and regions. While the main focus of the report is on selected EU MS, a few global examples are also presented.

This report sets out the positive and negative impacts of improvements in energy efficiency in buildings that could come about through a recast of the Energy Performance Buildings Directive (EPBD). Successive studies have shown that energy efficiency offers many of the most cost-effective options for meeting global emission targets. In many cases, energy efficiency measures have been shown to be ‘negative cost’, meaning that it would be economically advantageous to implement them.