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Frost & Sullivan: Implementation of Building Directive to Result in Reduced Greenhouse Gas Emissions and Greater Energy Efficiency (16/10/2007)

Climate change is one of the top priorities of the European Union. Through the introduction of numerous voluntary and mandatory schemes on energy efficiency, the EU is aiming to tackle global warming as well as other challenges, such as its increased energy import dependency and concerns over the supplies of fossil fuels worldwide.

New analysis from Frost & Sullivan, European Green Buildings Market - The Implementation of the Building Directive, illustrates that applying more stringent standards to new buildings and to renovations can help reduce greenhouse gas emissions and realize an energy saving potential of over 20 per cent by 2020. This will represent a considerable contribution towards meeting the Kyoto targets.

"Undoubtedly, the future is in more energy efficient buildings and the EU is working hard to make all buildings green," notes Frost & Sullivan Industry Analyst Reka Szanto. Despite all efforts to date, European countries in 2006 were still wasting at least 20 per cent of their energy due to inefficiency, with the European building stock contributing significantly to the problem.

There are numerous pieces of legislation, policy papers, voluntary agreements, promotional activities as well as incentive schemes published or supported by the European Commission, all calling for major reductions in greenhouse gas emissions and emphasising the importance of increased energy efficiency. However, all these efforts will prove to be in vain if they are not coupled with increased consumer awareness and behavioural change.

The Directive on the Energy Performance of Buildings (EPBD), which came into force in January 2003, intends to increase awareness of energy usage in buildings. It also aims at obtaining a substantial increase in investments in energy efficiency measures.

This legislation, 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, 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, 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 towards energy efficiency, there are several tools available to achieve this, including incentive schemes and information campaigns," states Reka 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, the Building Directive has a huge potential in energy conservation. Member states should make effective use of the EPBD, which will encourage the widespread uptake of environment-friendly products, technologies and services.

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