Buildings

energy reduction targets had been put in place by at least two-thirds of all those procurement agencies surveyed in each country, with the UK and Germany reaching 100 per cent. The most common requirements were double- glazing and insulation standards. The study further suggests that where green procurement is applied, a 70 per cent reduction in CO2

emissions per functional unit is

achieved while life-cycle costs are reduced by 10 per cent (PricewaterhouseCoopers, Significant and Ecofys 2009).

An example of billing and disclosure programmes is the smartcard meter for prepayment of electricity. Similar to information instruments, these can be particularly effective in targeting households. The use of smartcard meters in households have proven their value recently in South Africa, when electricity supply-shortages have caused the government and the power utility to pay closer attention to demand-side management. Moreover, smart metering providing customers with information on a real-time basis may help reducing energy demand by 5-10 per cent.

With respect to education and training, it is evident that the green transformation the building sector necessitates large numbers of skilled professionals. While in developed countries, there is already a critical mass of such professionals, many developing countries still lack the necessary expertise in the development and implementation of building codes and standards, standards for appliances, green building design, energy auditing, labelling and certification, and energy efficient operation & management (O&M). CEDEFOP (2010) listed the following new skills required for the building industry:

■ Knowledge of new materials, technologies and energy efficiency-adapted technical solutions;

■ Cross-cutting knowledge of energy issues;

■ Understanding other occupations related to building renovation; and ■ Client counselling/advice to meet new market demands.

A Green Skills Checklist prepared for the UK Government (DEFRA, UK and Pro Enviro Ltd 2009) noted the following areas of need for the building sector: building energy management, integration of renewable energy, energy- efficient construction, facilities management (including water and waste management), as well as building energy auditing and carbon rating. Based on its Strategy for Reduction of Energy Consumption in Buildings Denmark is developing a strategic skills development response for the building and construction value chain (CEDEFOP 2010). In Thailand, the Ministry of Energy has launched an initiative to train technicians in energy management, technology and end-use systems in buildings and companies. The Brussels Capital Region has created a Construction

Reference Centre, anticipating possible skills shortages and initiating training

programmes to increase the

supply of trained labour in the eco-construction industry (Martinez-Fernandez et al. 2010). Courses are offered in,

efficiency and handling of materials. As part of its Second Green Building Masterplan the Singapore Building and Construction Authority (Singapore BCA 2009) announced a comprehensive training framework aimed at educating around 18,000 green building-design, construction and maintenance professionals over the next 10 years.33

Evaluation of policy instruments The analysis in UNEP SBCI (2007b) of 80 case studies world-wide conclude that regulatory and control measures are probably the most effective as well as the most cost-effective category, at least in developed countries. Grants and rebates are especially needed in developing countries because the first cost-barrier often completely prevents energy efficiency improvements there. Tax exemptions appeared to be the most effective tool in the category of fiscal instruments. Subsidies, grants and rebates can also achieve high savings, but can be costly to society. It was concluded that financial instruments are typically most effective if they are applied in a package with other instruments, such as labelling combined with a tax exemption.

The results of the UNEP SBCI study as well as of the MURE database34

appear to contradict general

expectations, especially the high effectiveness and cost effectiveness of regulatory instruments compared with economic ones. These findings are probably specific to the building sector, considering which barriers specific policy instruments address. Regulatory and control instruments are particularly effective in addressing two key barriers in the building sector, namely hidden costs (transaction costs) and market failures.

Governments would be well-advised to consider

combinations of policy instruments, an approach likely to result in synergistic impacts and higher savings. Appliance standard are, for example, often combined with labelling and rebates to give incentives for investments beyond the minimum level required by the energy-efficiency standard. Also, labelling of energy- efficient products can be critical in enabling financial incentives such as loans, subsidies and tax credits to be more effective. In the USA, mandatory energy-efficiency

33. For further information and case studies please see Second Green Building Masterplan and Inter-Ministerial Committee on Sustainable Development

(2009); A lively and liveable Singapore: Strategies for

sustainable growth. Ministry of the Environment and Water Resources (MEWR) and Ministry of National Development (MND), Singapore.

34. The MURE (Mesure d’Utilisation Rationnelle de l’Energy) database, developed by European experts, provides online a description and brief assessment of policy measures for energy efficiency in EU member states. Available at http://www.isisrome.com/mure/

367 for example, isolation and water proofing, energy