Research Group for East Asia Environmental Policy Studies
International Workshop on E3 Modelling for Sustainable Low Carbon East Asia, 20th ~21st of September, 2014

Chapter 8:
Energy efficiency policies of building sector inNortheast Asia: macroeconomic implications
and interactions with existing climate policies
Unnada Chewpreecha, Seonghee Kim, Lisa Ryan and Sunhee Suk (○)

1

Contents:

1.Background
2.Objectives
3.E3ME modelling of Energy Efficiency (EE)
4.Analysis targets and policy scenario
5.Country profile
5.1 Status of energy consumption and GHG emissions
5.2 Building sector
5.3 EE policies of building sector
6. On-going activities
21. Background: Improvement in energy efficiency, by using less energy to provide the same level of economic
output, is widely accepted as one of the most cost-effective means to reduce CO2 emissions.

 At macro level, energy efficiency can also provide economic stimulus through investment,
improving trade balances through lower energy imports, shifting the energy-capital ratio, andreducing exposure to global energy prices.
 Measures to improve energy efficiency may also generate additional employment demand as
they tend to be labour-intensive.
 Importance of energy efficiency improvement as climate change countermeasures in the region.

 Therefore, we select the energy efficiency policies as the analysis targets.

32. Objectives:
 Overall, to estimate macroeconomic impacts of energy
efficiency policy in East Asia using the E3ME model.
What is Energy Efficiency (EE)?
Energy efficiency improvements involve technical or behavioural changes that result in
lower energy consumption, while delivering the same or better energy services. Energy
efficiency measures can take place on the supply-side of the energy system, in thegeneration, transmission and distribution of energy, and on the demand-side, where themain energy-using sectors are buildings (residential, commercial and business), transport,industry, and appliances and lighting.

43. E3ME Modelling of Energy Efficiency (1/2):
E3ME Inputs• Energy savings byusers/ fuels type
• Investment

Assumptions

E3ME Output• How investment are• GDP and components
funded, e.g., higher• Employment
costs to industry,• Impacts at sector level
higher electricity price,or fiscal spending• Time frame of policy

53.E3ME Modelling of Energy Efficiency (2/2):
Strengths

Weaknesses• Non-equilibrium approach allows for• Not a bottom-up energy system modelling –possibility of zero or negative costs of energy
i.e. cannot capture EE technologies (instead
efficiency options to exist
we can take into account of other energy• Allows fro available labour and capital tosystem results to provide macroeconomic
boost production levelimpacts)• Full integration E3 allows for analysis of• Issues of take-up rates are not taken intoenergy and climate policies in parallels
account (relying on prior analysis or• Rebound effects of EE
assumptions)• Modular approach means external source of • Relationships and IO structure are based on
EE savings can be incorporated
the past (not dynamic enough to capture• Allows for analysis over time
future technological change)64. Analysis targets and policy scenario:
Target countries: China, Japan and Korea
Target sector: Building sector (residential, commercial, andbusiness)
Policy scenario:
Baseline – announced and implemented policy by mid-2012.
Scenario – announced (anytime) but not yet implemented by
mid-2012.
Information to be input:
Information for individual policy or policy package, i.e., its
expected energy savings and associated investment/costs
75.Target counties profile (1/3): the status of energy consumption andGHG emissions

China, Japan and Korea are:
 All rank in the top 10 countries of the total energy consumption in the world.
 Accounting for around 30% of the world’s energy related CO2 emissions in 2010.
 Critically important for mitigation efforts globally.

ChinaJapanKorea

Total energy consumption,
Mtoe (rank)

2,471 (1)497 (5)250 (10)

Total GHG emissions,
MtCO2 (rank)

7,269 (1)1,143 (5)563 (7)IEA World Energy Statistics, 20128

5. Target counties profile (2/3): Building sector
Buildings currently account for 40% of primary energy consumption in most countries, and are also
a significant source of carbon dioxide emissions. Among the various measures that can be pursued,
the building sector offers the largest low-cost potential in all world regions by 2030 than othersectors. (Diana Ürge-Vorsatz, Climate change mitigation in the buildings sector: the findings of the 4th Assessment Report of the IPCC)

Building sector in China, Japan and Korea:
Energy consumption(% of the total)
GHG emissions(% of the total)

China

Japan

Korea

697 Mtce(19.3%) (1)

tba

tba

tba

tba

(1) Department of energy statistics, National statistics bureau of China, 20129

5. Target counties profile(3/3): EE policies of building sector① ChinaType of policy

Economic
instruments

Administrative
approach

Voluntary-based

Policy/measure

PolicyTitle

Subsidy/reward Financial subsidy programmeRegulation

Information

National building energy
efficiency standard
Retrofit targets for energy
savingEnergy saving of ruralbuildings
Energy saving operation andmanagement
Government procurement ofenergy-efficient products
Labeling for green building
promotion

Start year

2008

2008

2006
2011

Programme

Target building

Existing buildings andenergy-efficient
products, e.g., lighting,
The Five-Year electronic appliances
Plan for National
New buildings
Economic andExisting buildings
SocialDevelopment of (North area, others)
Buildings in rural
The Peoples
areas
Republic ofChina; and FYP
Large public buildings
specific forbuilding sector Governmental officebuildings
Green buildings
10② Japan
Type of policy

PolicyRegulatory Instruments
Economic Instruments
Economic Instruments
Information and Education
Policy Support, Strategic planning
Information and Education
Regulatory Instruments
Information and Education
Economic Instruments
Economic Instruments

Mandatory Construction Material Standard - Top Runner Program
Promotion of Zero Energy Building (ZEB) and Zero Energy Houses (ZEH)
Housing Eco-Point Scheme
Thermal Insulation Performance Labeling of Windows
Energy Conservation and CO2 Reduction Actions by Governments
National Promotion for Energy Efficient Home Appliances
Energy Conservation Policy for Housing
Promoting Sustainable Lifestyle and Houses: "Lo-House" Promotion
Premium Loans for Energy Efficient Retrofit/Construction for Housings
Financial measures for houses (subsidy, tax, preferential loan)
Promotion of Home Energy Management System (HEMS), Building Energy
Management System (BEMS)
Catalogue of High-performance Energy Efficient Appliances
Energy Performance Description System for Houses
Standby Power Reduction Policy
Guidebook on Energy Conservation in Buildings
Energy Efficiency Labelling System
Environment and Energy Friendly Building MarkFree Energy Audit for Small and Medium Sized Companies
Promotion of ESCO
Participation in International Energy Star Program
Regulation and Standard for Housing and Building (Energy ConservationAct)
Financial measures for small and meidium sized businesses (preferential loan,tax, subsidy)
Low Interest Loans for Energy Efficient Retrofit/Construction for Buildings

Economic Instruments
Information and Education
Information and Education
Voluntary Approaches
Information and Education
Information and Education
Information and Education
Information and Education
Economic Instruments
Information and Education
Regulatory Instruments
Economic Instruments
Economic Instruments

Start Year Current
2013
2010
2010
2008
2007
2007
2006
2006
2003
2002

In Force
In Force
In Force
In Force
In Force
In ForceIn ForceIn Force
In Force
In Force

2001

In Force

2000
2000
2000
2000
2000
1999
1997
1996
1995

In Force
In Force
In Force
In Force
In Force
In Force
In Force
Unknown
In Force

1980

In Force
In Force
In Force 11

③ KoreaType of policy Policy/measure

Regulation

Regulation

PolicyTitle

Start year

Information

Information

건물단열, 에너지 관리 장치 (조닝제어장치,대기전력 차단 장치) BEMS(건물에너지관리시스템), 신재생에너지(태양광, 지열,천연땔감, 고효율 난방장치)BEMS

온실가스에너지목표관리제

2011

BEMS (서울시)건축물 에너지 절약 설계 기준(에너지 절약 계획서)(2013.2 녹색건축물 조성 지원법 시행,
2013. 9 열관류율 기준 30% 강화 및제출 대상 확대 시행)

2014

연면적 10만㎡ 이상의 신축 대형 건축물2003

연면적 500m2이상 신축건물평균열관류율(단열), 기밀성 창호, 냉난방, 옥상조경, 급탕, 조명 등에너지 소비 총량제 (서울시)2013연면적 3천m2이상 비주거, 100세대 이상 공동 주택 (신축,리모델링포함)난방, 냉방, 급탕, 조명, 환기2009에너지 이용 합리화 법에 의한 ESCO사업subsidy

Applied technology관리대상인 관리업체는 기업(법인)단위와 사업장 단위로구분되며, 연차적으로 적용대상 확대 (기업단위: 온실가스(tCO2)>50,000, 에너지 (TJ)>200, 사업장단위:온실가스
(tCO2)>15,000 에너지 (TJ)>80)친환경주택의 건설기준 및 성능(그린홈 인증제도)Economic
Instruments

Target building기존신축공동주택 20세대 이상외벽, 측벽, 창호, 현관문, 바닥, 지붕, 보일러,집단에너지, 신·재생에너지(태양광, 태양열, 지열,풍력), 고효율 설비(고기밀성창호, 고효율기자재,대기전력차단장치, 일괄소등스위치,고효율조명기기 및 공용화장실자동점멸스위치,실별 온도조절장치, 절수기기)3000m2이상 신축, 증축 건물조명, 보일러, 폐열회수, 냉난방설비기존

건물단열, 에너지 관리 장치 (조닝제어장치,대기전력 차단 장치) BEMS(건물에너지관리시스템), 신재생에너지(태양광, 지열,천연땔감, 고효율 난방장치)조명교체, 냉난방, 폐열회수토지이용 및 교통, 에너지 및 환경오염, 재료 및자원, 물순환 관리, 유지관리, 생태환경,실내환경의 7개 전문분야의 평가 항목별 점수를합산하여 등급을 인증2014모든유형민간사업1993공공건축물 (LH 노후 연구임대주택, 1만m2이상)녹색건물인증제도 (G-SEED, Green
Standard for Energy & Environment
Design)2002

공공, 공동주택, 비주거건축물에너지효율등급인증제도

2013(신기축) 주거, 냉난방 면적 500m2이상 모든용도건축물

난방, 급탕, 냉방, 조명, 환기신재생에너지 이용 건축물 인증제도2011연면적 1000m2이상인 신축 업무시설신재생에너지

대기전력저감프로그램 (e-StandbyProgram)2008

그린 리모델링에너지소비효율등급표시제도

신축컴퓨터, 텔레비전 등 사무·가전기기가정용 가전제품12

6. On-going activities
1. Conducting a test operation of model with primarily collected datafor China.
2. Further specify the major EE policies of building sector in thethree countries for the setting of policy scenarios.
3. Preparing the matrix for data to be collected or assumed.
4. Collecting data for the three target countries.
5. Challenges: Policy scenario construction; Time frame for theanalysis; Availability of data; Implication explanations of thecalculation results; etc.

13

Thank you very much for your attention andwelcome any comment!

Sunhee SukIGES
sunhee@iges.or.jp
14