By TIOL News Service

PARIS, AUG 25, 2013: A joint report by International Energy Agency (IEA) and United Nations Development Programme (UNDP) has stated that adoption of building energy codes by existing buildings through renovation in the developed countries can give a leg-up to economic growth and tax revenues.

The report, released on 21 st August, says: "An ambitious energy renovation action plan in IEA member countries would also engage various market-actors in a green growth strategy by strengthening the labour market through career training and local job creation, boosting innovation, enhancing competitiveness and creating new business opportunities for local industry"

The report captioned ‘Modernising Building Energy Codes to Secure our Global Energy Future', adds: "It would also increase governments' income through direct and indirect taxes (e.g. value-added tax, property taxes and payroll), which could be extended over several decades as the net employment effect of buildings energy renovation last for several decades."

According to the report, e stimates show that cost-effective energy retrofits of 40% of the United States' buildings stock by 2020 will require USD 500 billion of public and private investment, but will directly and indirectly generate approximately 625 000 sustained full-time jobs.

Similarly, estimates for European Union show that cost-effective building energy retrofits may generate a permanent annual economic benefit of USD 134 billion to USD 225 billion, depending on the level of investment made between 2012 and 2020. Energy renovation of existing buildings will also reduce households' energy expenditures, which in 2010 represented more than 3% of GDP in Germany and the Slovak Republic, and more than 2% in most other IEA member countries.

In the US, cost-effective energy retrofits could save consumers USD 32 billion to USD 64 billion a year in energy costs, or USD 300 to 1 200 a year for each individual family.

Stressing the need for creating an effective mechanism to enforce building energy codes and to check their compliance, the report says that the costs of compliance-checking are usually covered by permit revenues. However, since compliance-checking requires significant manpower, national governments may need to supply additional resources to support local authorities and improve compliance-checking. Alternatively, local authorities can use their tax revenues.

The report notes that b uildings are the largest consumers of energy worldwide. In many IEA member countries, the buildings sector accounts for over 40% of primary energy consumption.

In IEA's 28 member countries, where current buildings stock will remain in place for years to come, the main focus should be on renovation, through implementation of energy codes and minimum performance standards in existing buildings. In non-IEA countries, where more than half of the buildings stock needed by 2050 has yet to be built, new buildings should be designed to be low-energy consumers, with codes that specify strict performance standards. Comprehensive policy packages are needed to facilitate and promote the use of advanced building energy codes.