SPARK16 Presentation: Measuring for Results: Data and the Changing Energy Landscape
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The document discusses the significant energy consumption and carbon emissions associated with buildings in the U.S., which account for approximately 40% of the nation's carbon emissions. It highlights the economic potential of retrofitting and energy-efficient practices, including job creation and reduced utility expenses, while emphasizing the importance of data transparency and benchmarking in driving market improvements. Key insights include the correlation between building efficiency and lower mortgage risks, as well as the need for improved accessibility to efficiency information across various stakeholders.
SPARK16 Presentation: Measuring for Results: Data and the Changing Energy Landscape
- 1. Measuring for Results: Data and the Changing Energy Landscape Cliff Majersik Executive Director Institute for Market Transformation (IMT)
- 2. Measuring for Results: Data and the Changing Energy Landscape Cliff Majersik Spark16 Atlanta Sept. 15, 2016
- 3. Money saved • U.S. spends $400B+/year Infrastructure investment • $279B+ retrofit potential Local job creation • 3.3million cumulative job years Market Potential
- 4. 0.0 20.0 40.0 60.0 80.0 100.0 120.0 BRAZIL CANADA GERMANY JAPAN INDIA RUSSIA U.S. BUILDINGS UNITED STATES CHINA Buildings in the U.S. use more energy than most countries use and account for 40% of U.S. carbon emissions 2011 Total Primary Energy Use (Quadrillion BTU) Why Buildings Matter
- 5. In large cities with significant public transportation, buildings typically account for 70% or more of CO2 emissions and energy usage. DISTRICT OF COLUMBIA Buildings (74%) Transportation (22%) Waste (2%) Metro transit (2%) NEW YORK CITY Buildings (75%) Transportation (20%) Solid waste, wastewater and fugitive (5%) BOSTON Buildings (71%) Transportation (29%) CHICAGO Buildings (70%) Transportation (21%) Other (9%) Why Buildings Matter
- 6. Buildings (74%) Buildings (75%) Buildings (71%) Buildings (70%) Why Buildings Matter Transportation and Others 34% Buildings 66% City of Atlanta Energy Consumption Transportation and Others 42% Buildings 58% City of Atlanta CO2e Emissions
- 7. ENERGY STAR as Industry Standard
- 8. ENERGY STAR as Industry Standard Through 2014: More than 400,000 properties benchmarking energy use More than 25,000 properties are ENERGY STAR certified
- 9. Average 2.4% annual energy consumption reduction over 3-year period. Utility expenditures reduced by about 3%. 77% facility managers in NYC surveyed made operational changes in response to benchmark and transparency. 75% installed new energy- efficient equipment. Energy + Cost Savings
- 11. U.S. Benchmarking Policy Landscape: Flagship Policies, 7 Billion Sq. Ft. of Commercial Space
- 12. How the Market Can and Is Using Data
- 14. High demand for energy- efficient products and skilled workers Small businesses adding staff and increasing client bases KEY TAKEAWAY: Financing not the key barrier. Primary issue is demand. Job Creation + Economic Growth
- 15. Job Creation + Economic Growth “As a Silicon Valley venture capitalist … I tell our green startup companies to focus on San Francisco or New York City. That’s where the action is going to be.” - Elton Sherwin, venture capitalist, senior managing director, Ridgewood Capital “The Greener Greater Buildings Plan has spurred the New York Market to interest and activity around energy efficiency. Over the past year, we have begun working with over 75 million square feet of real estate in New York and over 400 new clients.” - Lindsay Napor McLean, COO, Ecological “When an owner sees a benchmarking score that is lower than expected, they’re a little more receptive to improvements to bring the score up, which in turn lowers their utility costs.” - Kevin Dingle, president, Sustaining Structures
- 16. Market Competition + Consumer Choice Building performance data collected Data shared with stakeholders and market Market compares building performance Market rewards efficient properties Owners improve efficiency to remain competitive Efficiency of building stock continuously improves
- 17. CoStar to Include Data 95B Sq. Ft. tracked 4.6M properties
- 18. What the Data is Telling Us
- 19. Energy intensity is greater in newer office buildings than older buildings. ENERGY STAR scores are higher in older office buildings than newer buildings. What the Data is Telling Us
- 20. The poorest performing buildings use 3 to 7 times the energy and roughly 8 to 13 times the water of the highest performing buildings. What the Data is Telling Us
- 21. Residential energy efficiency is associated with lower mortgage default and prepayment risk 32% lower default risk on ENERGY STAR homes, controlling for other factors, including price, location and FICO score. The more efficient the house, the lower the default risk. What the Data is Telling Us
- 22. How the Market is Responding
- 23. 0% 5% 10% 15% 20% 25% 30% RENTAL PRICE SALE PRICE OCCUPANCY RATE AVERAGE PREMIUM Wiley et al 2010* Fuerst & McAllister 2009/11 Jackson 2009 Pivo & Fischer 2010* Eicholtz et al 2010* Added Value of ENERGY STAR Labels in Commercial Market
- 24. Jackson, 2009 Pivo & Fisher, 2010 Fuerst & McAllister, 2011 Eicholtz, 2010Wiley et al., 2010 Rental Premiums for Green Commercial Buildings in the U.S.
- 25. Growth of Companies Reporting Data $2.8 Trillion Total gross asset value of companies and funds reporting to GRESB Real Estate in 2016 $7.6 Trillion Institutional capital represented by 58 GRESB investor members
- 26. Existing Barriers Informational Lack of transparency around efficiency Institutional Energy efficiency is undervalued Transactional Split incentives Organizational Information doesn’t flow within company or process Inertia Business as usual continues without intervention
- 30. Engaging Buildings and Owners of All Sizes
- 33. Cliff Majersik Executive Director, IMT Washington, DC [email protected]; @IMTCliff Thank you!