The European Union’s programme for India This project is funded by The European Union Project implemented by EXERGIA S.A. member of SACO Consortium, in collaboration with PwC India The European Union’s programme for India Clean Energy Cooperation with India (CECI): Legal and policy support to the development and implementation of energy efficiency legislation for the building sector in India Regional Workshop Pune, 18 May 2018 EU experiences in implementing the Energy Performance of Buildings Directive (EPBD) Kevin O’Rourke

Structure of presentation on EU experiences 1 Explain EU EPBD: key requirements, challenges 2 EPBD ACTION PLANS: tasks, responsibilities, timescales 3 ADOPTION: steps, actions, experiences 4 COMPLIANCE: steps, actions, experiences 5 ENFORCEMENT: steps, actions, experiences 6 LEVERAGE: steps, actions, experiences 7 IMPACT and SUCCESS FACTORS summarised 8 Possible application to implementing ECBC in India?

28 EU Member States: Context, diversity, status 500 M population in 28 Member States: Not a federal Union Diverse sizes – from 0.4 M population to 80 M population Diverse levels of economic development Diverse climates and architectural idioms Diverse political/ administrative/ regulatory traditions Diverse educational systems Diverse approaches to setting building codes Diverse systems and cultures of compliance enforcement BUT ALSO: Many common and shared principles

Key EPBD requirements on Energy Performance The Directive obliges all Member States, by specified dates*, to: Adopt an Energy Performance (EP) calculation methodology that complies with EU guidelines Set Minimum Energy Performance Standards for new buildings and ‘major renovations’ On the basis of a ‘cost-optimal’ methodology Standards to be reviewed at least every 5 years To achieve a ‘Nearly Zero Energy Buildings’ (NZEB) standard by 2020 Establish Energy Performance Certification (energy label) mandatory for all new buildings &/or all buildings offered for sale or rental * Up to 3-year extension was originally allowed on full implementation of some requirements Cf. ECBC

GOVERNANCE & CO-ORDINATION EU & NATIONAL LEVELS

Typical core national EPBD Steering/ Co-ordination group National energy agency (Sec) Ministry of Energy Ministry of Construction (Chair) Office of Public Works Other? Ministry of Local Government Other? Plus consultative forum for market stakeholders & facilitators

EU EPBD Implementation: Governance & Support System EU Council of Ministers EU Parliament CEN EU Commission EU Legal Services Management Committee of Member States Liaison Committee CEN Committees Member State authorities IMPLEMENT National Standards Authorities Member States’ EPBD Action Plans Member States’ authorities EU Joint Research Centre ‘Concerted Action’ – Collaborative Forum IEE RD&D projects

Energy Performance of Buildings Directive (EPBD) in Ireland Example: Implementation in Ireland - Action Plan Institutional Published by Steering Group Transposition Technical systems Admin systems Gantt chart showing: Tasks Responsibilities Timelines/ Deadlines Communications

EPBD implementation steps Approaches/ experiences from EU and its Member States ADOPTION COMPLIANCE ENFORCEMENT LEVERAGE Governance Action Plan/ Roadmap Stakeholder consultation Cost optimal studies Regulatory Impact Assessment Assigning functions, powers, resources Admin & data systems Legal transposition Technical standards Calculation methods Software RD&D projects EP targets Training & exams Codes of Conduct Registration systems EP certification Industry readiness >>>>> NZEB Legal authority Responsibility Registers Databases Quality assurance Auditing Enforcing action Industry action EP certification visibility Skills enhancement Promotion campaigns Financial instruments Renovation strategies Institutional & Legal Technical Capacity ‘Systems’ Enforcement Impact

ADOPTION steps: Governance Action Plan/ Roadmap Stakeholder consultation Cost optimal studies Regulatory Impact Assessment Assigning functions, powers, resources Admin & data systems Legal transposition Leadership, co-ordination, master planning, task actioning, legal enactment

Stakeholders in buildings sector – a complex arena The ‘supply chain’ = the ‘skills chain’ = the ‘quality chain’ Plan Design Specify Construct Install Commission Sell/ let Operate Maintain Improve/ Demolish Clients Architects Builders Users Service Agents Consultation Co-ordination Engineers Installers Quantity Surveyors Financial institutions Product suppliers Air leakage testing EPC Etc. Planners EIS Design tools Specialist services Inspectors & Certifiers Utilities Regulators Registration/ certification bodies Trainers An industry arena of diverse, fragmented, sometimes disconnected sets of skills Multiple market players & influencers

Legislative transposition Typical development/ consultative process: 6-24 months Typical content: Explanatory memorandum Reference to previous and source legislation Obligations on compliance by building owners and their agents Definitions Roles of certifiers Assignment of functions & powers of administrative authority Assignment of functions & powers of enforcement authority Documentation submission requirements to show compliance Penalties Accompanying technical requirements guidance documents Accompanying detailed technical support documents

tools, skills & systems development COMPLIANCE steps: Technical standards Calculation methods Software RD&D* projects EP targets Training & exams Codes of Conduct Registration systems EP certification Industry readiness >>>>> NZEB ‘Capacity building’: tools, skills & systems development * Including demonstration projects

Integrated set of European Standards for energy performance In partnership with ISO

Schematic of EN standard for energy performance calculation

National calculation methodologies and software Aligned with EN standard

Defining ‘Nearly Zero Energy Buildings’ (NZEB) Performance Criterion (‘Primary Energy’): New buildings: less than 50 kWh/m2 for most buildings (possibly 150 kWh/m2 for intense activity buildings such as hospitals) Renovations to existing buildings: less than 150 kWh/m2 for most buildings (possibly 250 kWh/m2 for intense activity buildings such as hospitals) Potentially ‘energy positive’ (from export of renewable energy surplus…..) Comfort criteria - Maintain acceptable levels of: Internal environmental temperature Humidity Air quality and movement Lighting levels and quality Noise

Current ‘Financial Gaps’ = scope for financial/ market incentives Cost optimal studies to review building energy codes en route to NZEB ( ‘nearly zero energy buildings’) 5-yearly review of building codes. Scope for energy, CO2 and technology costs to change……. Cost optimal ‘Life cycle cost’ (LCC) NZEB LCC for NZEB up to 10% above ‘Cost Optimal’ Current ‘Financial Gaps’ = scope for financial/ market incentives ‘Optimum Zone’

RD&D projects: helping to build capacity & confidence Low energy building demonstration projects in Europe: 30 examples from 19 Member States

EPBD: accelerating the progression in EP targets Ireland After 31 December 2020 all new buildings occupied are to be ‘nearly zero’ (NZEB) energy buildings (31 December 2018 for public buildings)

Simplified example of ‘roadmap process’ to ‘NZEB’ Code 2005 1.0 0.8 Code 2007 0.6 EPC Code 2011 0.4 Code 2018 0.2 NZEB LZC 0.2 0.4 0.6 0.8 1.0 CPC

Design formats for some EP certificates (labels) in Europe Many variations …. Public consultation on design, scales etc. But, despite differences, we can all “read” similar message in any of the certificates…

Creating market success: Responsibilities for service volume (V), quality (Q) & quality assurance (QA): What people ? TIME “Market” (Building Owners/ Agents) Documented procedures Training & exam delivery materials Tools/ software EN/ National Standards Actions SERVICE delivery Training providers developers Software Research CEN & Natl. Stds. bodies Responsibilities Registered Certifiers Docs Docs Q V State & Regional Authorities Accreditation bodies Professional Authorised agencies Scheme administrator Validation Accreditation Post- auditing QA Outcomes

Behave in an independent manner Registered Energy Performance Certifiers: Example of Code of Conduct elements Competence Data integrity Obligation to act with due care in an independent manner Indemnification of national authority and Insurance Records, data and documentation Confidentiality and data protection Client service Charges and levies Advertising and sales promotion Compliance monitoring Appeals, complaints and disputes Public registers managed by national energy agency Register of certifiers Register of certificates (and source input data) CPD obligations Behave in an independent manner Professional ethics 24 24

Energy Performance of Buildings Directive (EPBD) in Ireland Example: Path from Training to Registration Energy Performance of Buildings Directive (EPBD) in Ireland Training Provider Accredited Training Spec Published Calculation Methodology Published Calculation Software developed Training programme(s) including assessment criteria validated Eligible learners register with Training Provider for programme Complete training Training Provider advertises validated programme Exam and ‘Assignment’ Register as EP Assessor Assessor details accepted on to National Register Assessor completes assignments, while meeting all QA requirements State authority Training Provider with Accreditation Body Training Provider Assessor

Energy Performance of Buildings Directive (EPBD) in Ireland Example: Administration System for EP certifiers Maintain National EP Certificate Database Set & operate rules for EP compliance Maintain Register of EP certifiers Administration Body Quality Assurance of Scheme Report to Administration Committee Provide software technical support Help Desk

Ensuring effectiveness ENFORCEMENT steps: Legal authority Compliance chain of responsibility Registers/ Databases Quality assurance Auditing Enforcing action Ensuring effectiveness

Possibly assisted by energy agency Building control: Chains of responsibility and integrating energy performance requirements Possibly assisted by energy agency Lead certifier Ancillary certifiers (ventilation) Ancillary certifiers (structural) Ancillary certifiers (fire) Ancillary certifiers (noise) ENFORCER Building Control Authority Ancillary certifiers (energy) Building owner ‘Building Control Management System’ Database

EP compliance checkpoints in EU countries

Example of an approach to QA and sample auditing: Aim - know, maintain and improve quality Control (inspection/ audit) system elements

Enforcement and sanctions profiling for EU Member States When did your country/ region start to enforce the requirements for new buildings? Most powerful sanction: denial of permit Obliges corrective action to comply

Stimulating awareness, visibility, opportunity, impact LEVERAGE: Steps Industry action EP certification visibility Skills enhancement Promotion campaigns Financial instruments Renovation strategies Stimulating awareness, visibility, opportunity, impact

Main policies & measures in support of NZEBs in EU States For new-build No. of Member States For major renovations No. of Member States

Visibility of EP Certificates Influencing buyer choice & valuation: Emerging research from a number of EU countries indicates that a better energy rating on the EP certificate translates into a higher building price or rental rate Linking to rules on ‘Green Public Procurement’ (another EU Directive)

Roles of key-players in a well-functioning market of EE buildings The industry: Role, readiness, opportunity Quality EP (ECBC) targets are a ‘LEVEL PLAYING FIELD’ for developers/ builders Construction is a sector where REGULATION drives INNOVATION

Examples of technologies driven by building energy codes Higher performance insulation materials Vapour barriers, draught sealing High performance glazing Solar shading and control products Passive ventilation products, mechanical ventilation heat recovery, hybrid ventilation systems Smarter heating controls DHW insulated storage, heat exchangers Condensing boilers More efficient chillers More efficient motors, variable speed drives Solar water heating Biomass boilers Heat pumps Group heating for apartments, heat metering, heat exchangers Energy efficient lighting: LED lamps, luminaires, controls Comprehensive building systems/ offsite construction

EPBD implementation: IMPACTS Energy, cost and emissions savings, plus more energy security Widespread market visibility and awareness of EP of buildings (EPC) More stimulus of demand for EE buildings by consumers, developers (private, public or social) and specifiers for EE products and services EP established as an integral requirement in building design, specification, procurement and marketing processes Evidence of impact on property values Growing interest in going beyond the EP standards Helping to mobilise investment in deep energy renovation of existing buildings – intense focus on new financing instruments Impetus to innovation (better quality & cost) by designers, developers Upskilling of other service providers within the building industry Demand for enhanced foundational and CPD/ supplementary education & training A clear policy commitment and path to ‘nearly zero’ energy buildings

EPBD implementation: SUCCESS FACTORS Leadership, commitment and coordination in governance Clear action plan/ roadmap Consultation and consensus on both legislative and operational details Coordinated structures, clear responsibilities (compliance chain) Clear and realistic (but sufficiently ambitious) targets, timetables Allied policy activities (e.g. demonstration projects) – capacity, confidence Technical criteria based on robust evidence –research, market trials, international Coordinated training programme ensuring sufficient numbers upskilled Tools – good quality support documentation and software tools which are validated and compatible with the official administrative systems software Investment in on-line databases and ICT smart administrative systems - enable monitoring, verification, enforcement and future initiatives and strategies Well designed monitoring, validation, QA and enforcement systems Sustained communication campaigns through multiple channels – with the industry and the general public (including political representatives) Active collaboration and sharing of best practice experiences

EPBD ‘Concerted Action’ website REFERENCES ACE: E2 Position Paper #2 EU ‘BUILD UP’ website EPBD ‘Concerted Action’ website

Thank you for your attention EXERGIA Energy and Environment Consultants Omirou Str. & Vissarionos 1, 106 72 Athens Tel: +30210 6996185, Fax: +30210 6996186 www.exergia.gr In collaboration with Price Waterhouse Coopers India Building 10, Tower C, Floor 17th, DLF Cyber City Gurgaon 122002, Haryana| India Tel. +91 0124 3306259 www.pwc.in