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PROPOSAL TO REVISE ENERGY EFFICIENCY REQUIREMENTS OF THE BUILDING CODE OF AUSTRALIA FOR COMMERCIAL BUILDINGS 27
Policy response
While the CPRS’ price signal may encourage some demand side
abatement from the commercial buildings sector, a substantial amount of
abatement remains untapped. Studies undertaken in Australia to assess
the potential for energy efficiency gains and related GHG emissions
abatement report the existence of considerable untapped cost effective
energy efficiency opportunities (CIE 2008). While there are aspects of
these studies that draw comment and criticism (regarding assumptions
about future energy prices, discount rates, investment costs necessary to
achieve energy efficiency improvements, business as usual projections,
adoption rates of best practice and administration costs) consistencies in
the key result results are significant. A summary of the estimated energy
efficiency potential reported in selected Australian studies is provided in
CIE (2008) and reproduced in table Error! Reference source not found.
below.
2.6 Potential and scope for energy efficiency in Australia (selected
sectors)
Energy efficiency potential (%)
Sector
SEAV-NFEE
Phase 1 –
low
scenario
SEAV-NFEE
Phase 1 –
high
scenario
SEAV-NFEE
Phase 2
SEAV-NFEE
general
equilibrium
study
Clean
Energy
Future
Group
Commercial 27 70 10.4 10.4 39
Residential 34 73 13 13 21
Note: SEAV = Sustainable Energy Authority Victoria. NFEE = National Framework for
Energy Efficiency.
Source: McLennan Magasanik Associates Pty Ltd (2008) referred in CIE (2008).
International studies also highlight the significant potential to reduce
energy demand in the building sector. Some examples are provided
below.
• Stern (2007) notes that key reviews of global energy needs and options
to combat climate change broadly agree that energy efficiency will
make a very significant proportion of the GHG abatement needed and it
will form the lower cost means of achieving that abatement.
• The Fourth Assessment Report of the Intergovernmental Panel on
Climate Change (IPCC) examined the potential GHG abatement from
the residential and commercial building sectors in considerable detail
(Levine et al 2007). This study notes that a survey of 80 studies in the
literature indicates that there is a global potential to cost-effectively
reduce approximately 29 per cent of the projected baseline emissions in
the residential and commercial sectors by 2020.
www.TheCIE.com.au