Survey: What Will It Take to Make Buildings More Energy Efficient?

In 2010, China built more housing than Spain has homes. That factoid underscores the significance of energy efficiency for buildings in a report released this week by an affiliate of the respected publication, The Economist.

Commissioned by the Global Buildings Performance Network, the report emerged from a survey of real estate and construction executives in the European Union, India, China and the U.S.

It offered promising news: The right policy signals could unleash an international boom in energy efficiency.

What motivates these professionals? Not surprisingly, it’s the potential they see to cut costs. They “are ready to go deep and are waiting for the right policy signals that can scale up energy efficiency in the sector,” said GBPN in the report.

Although barriers exist, business leaders in building and real estate already are pursuing a range of efficiency measures. The survey found that:

Energy usage is important for most of the companies and is key factor in investment decisions to 63 percent of those surveyed. Companies that describe themselves as “financially successful” rated energy particularly high.Lighting retrofits scored high among actions companies are taking. About 57 percent are replacing lighting , 50 percent HVAC systems and 50 percent building insulation.Forty percent are reconfiguring building layout to take advantage of natural light.Energy efficiency is a risk management tool for 69 percent, a sign that they have a sophisticated understanding of energy.
Not all of the news was good, however. Companies are unaware of the actual costs of their energy use. Less than a third have commissioned energy audits for their buildings. Further, two thirds of those surveyed overestimate the cost of energy efficient construction.

A surprising 75 percent saw benefit in energy regulation and described lack of enforcement as a problem. The solution? Not too much carrot and not too much stick, concluded the survey report.

“While the survey shows that most companies prefer carrots, at some point governments also need to wield the stick,” the report said. “Striking the right balance between incentives and restrictions is not easy. Excessive red tape and mixed messages are costly to business and slow the adoption of more efficient technologies. The market needs clear long-term signals, rational expectations and opportunities for a reasonable return on investment.”

The Economist Intelligence Unit surveyed 423 senior executives from the real estate and construction industries in the summer 2012. About 27 percent of those surveyed came from the US, 24 percent from the European Union, 25 percent from China and 24 percent from India. All of those surveyed worked in operations, strategy or finance. More than half were C-level executives or above and nearly half from businesses with more than $500 million in global annual revenue. The full report, “Energy Efficiency and Energy Savings: A View from the Building Sector,” is available for download here.

Elisa Wood is a long-time energy writer. See more of her work at RealEnergyWriters.com.

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Poll: What takes to make buildings more energy efficient?

2010, China built more housing than Spain houses. This factoid underlines the importance of energy efficiency for buildings in a report published this week by a subsidiary of the prestigious publication of the Economist.

The report emerged from a survey of real estate and construction managers in the European Union, India, China, and the United States on behalf of global building performance network,.

It offered promising news: the right policy signals could unleash an international boom in the area of energy efficiency.

What motivates these professionals? It is not surprising, it is the potential that they see, to reduce costs. You "are ready to go deep and waiting for the right policy signals that can scale in terms of energy efficiency," GBPN said in the report.

Although there are barriers, business leaders in construction and real estate already pursue a series of measures to increase efficiency. The survey found that:

Energy consumption is important for most businesses and key factor for investment decisions to 63 percent of the respondents. Describe companies that particularly highly rated themselves as "financially successful" with energy.Achieved highly under actions companies take lighting retrofits. About 57 percent are lighting, HVAC systems by 50% and 50% building insulation replace.Forty percent are building layout natural light use Neukonfiguration.Energieeffizienz is a risk management tool for 69 percent, a sign that they have a sophisticated understanding of energy.
Not all of the news was good, however. Companies are deliberately not the actual cost of their energy consumption. Energy audits gave less than a third of their building in order. Two-thirds of the respondents overestimated the cost of energy-efficient and sustainable construction further.

A surprising 75 percent saw use energy regulation and described lack of enforcement as a problem. The solution? Not too much carrot and not too much stick closed the survey report.

"While the survey shows that most companies of prefer carrots, must at some point Governments also stick to swing", according to the report. "The right balance between incentives and constraints is not easy." Excessive bureaucracy and mixed messages are expensive and slow the introduction of more efficient technologies for businesses. "The market needs clear, long-term signals, rational expectations and opportunities for a reasonable return on investment."

The Economist Intelligence Unit surveyed 423 managers from the real estate and construction industries, in the summer of 2012. About 27 percent of the respondents came from the United States, 24 percent from the European Union, 25 percent from China and 24 percent from India. All respondents worked in operations, strategy or finance. More than half were C-level executives or above and that nearly half of companies with more than 500 million $ global annual turnover. The full report, "energy efficiency and energy savings: A view from the building industry," is available here for download available.

ELISA Wood is a long-time energy writer.

View the original article here