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84 04 POLICY LANDSCAPE SIDEBAR 8. THE LINKAGE BETWEEN RENEWABLE ENERGY AND ENERGY EFFICIENCY: FOCUS ON SUSTAINABLE BUILDINGS The critical interplay between renewable energy and energy efficiency in achieving sustainable and inclusive growth has been widely recognised in recent years.i It was an impetus for the United Nations Secretary General’s Sustainable Energy for All (SE4ALL) initiativeii, which resulted in important voluntary commitments from businesses, investors, and national governments during 2013 to advance renewables and energy efficiency. High energy prices and global fossil fuel subsidies—estimated to be at least USD 544 billion in 2012—have reinforced the need for energy efficiency improvements and renewable energy, and have highlighted the potential for adding value by focussing on both areas. Energy efficiency can be considered the “primary fuel” laying the foundation for a low-carbon energy future. When employed in concert, energy efficiency and renewables offer significant economic benefits and a wide range of co-benefits, including climate change mitigation, health improvements, energy access, and job creation. Annual relative global primary energy intensityiii is trending downwards again, after a sudden increase during 2009 and 2010. The developments in 2011–12 provide some optimism that energy demand can be further decoupled from GDP growth. Assuming the full implementation of policies and measures already enacted to advance energy savings, as well as those currently under discussion, it is estimated that primary energy demand in 2035 could be 7% lower than under a business-as- usual scenario. The majority of these savings would come from efficiency gains in end-uses; industry would account for 37% of these efficiency-related savings, followed by transport (31%) and buildings (26%). Savings would still fall short of the full economic potential available in 2035, however, and it is expected that the greatest unrealised potential would be in the buildings sector. Considering that a building’s lifetime is 50 years or more, optimising efficiency and use of renewables as early as possible is critical for maximising potential energy savings while avoiding further lock-in to inefficient building stock. Integrating efficiency and renewables into the design stage is particularly relevant for emerging economies, where rates of urbanisation and building construction are high; in India, for example, about 70% of the building stock expected by 2030 has yet to be constructed. Developed countries face a different challenge in that most of the energy efficiency potential lies in retrofitting of the existing building stock. To address these challenges, more governments around the world are focussing on the building sector. China, for example, published new policy measures in 2013 to encourage the adoption of green building practices. Two additional Indian states adopted the Energy Conservation Building Code, which integrates renewable energy and energy efficiency and mandates the use of solar water heating in specific building types. In Australia, around 100 local governing authorities received grants under the Local Government Energy Efficiency Program to install energy efficient solar and heat-pump systems for water heating in their buildings and community facilities. Several agency initiatives and programmes were started during 2013. For example, the Renewable Energy and Energy Efficiency Partnership (REEEP) and the Global Buildings Performance Network (GBPN) launched the “1 Billion m2 of Positive Energy Buildings” intervention, which aims to promote transformational change in the building sector by shifting the concept of buildings as energy consumers to energy producers that can meet their own energy needs. In addition, the International Partnership for Energy Efficiency Cooperation (IPEEC) conducted a survey on building rating tools in order to identify how they can help reduce energy consumption and associated greenhouse gas emissions. Also in 2013, various national green building councils continued to promote the adoption of voluntary green building rating systems. For example, the U.S. Green Building Council launched a new, more rigorous version of the LEED rating system, which is used internationally. Bottom-up demand for green buildings expanded as well. By year’s end, the Australian Green Star had been awarded to over 650 projects, and more than 50% of these were certified in the past three years. In South Africa, the green building movement has gained ground rapidly, with 36 buildings receiving a Green Star SA rating by mid-2013. This sidebar on renewable energy and energy efficiency linkages is a regular feature of the Global Status Report. Source: See Endnote 116 for this section. i - For more on the interplay between energy efficiency and renewable energy, see Feature section in GSR 2012. ii - The SE4ALL initiative targets, by 2030, universal access to modern energy services, a doubling of the share of renewable energy in the global energy mix, and a doubling of the global rate of improvement in energy efficiency. By early 2014, more than 80 governments from developing countries from all regions had joined the initiative. See http://www.se4all.org/our-vision/our-objectives/. iii - Primary energy intensity is commonly used as a proxy for energy efficiency, even though it fails to cover the multi-dimensionality of the latter.

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