Getting top dollar for carbon savings
Why energy efficiency in buildings matters

Knauf Insulation

It is possible to save more CO₂ per dollar than almost any other measure yet still so little is being done to reduce greenhouse gas emissions from buildings across the globe. Tony Robson, CEO of Knauf Insulation, talks about tackling existing buildings, engaging the building chain and pushing forward towards low energy and sustainable buildings.

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Tony, energy efficiency in buildings is often quoted as being extremely cost effective, but does the lack of action suggest the case has not been made?
TR: Five, maybe even three years ago, I might have agreed with you but things have changed. The McKinsey global cost curves have shown the incredible role that energy efficiency in buildings and in particular insulation can play in delivering both cost and carbon savings. Figures in Europe point to 270 billion euros (US$380 billion) annual energy savings and 460 million tones of CO₂, just to go from energy guzzling buildings to low energy buildings. If we pushed on to very low energy buildings, the savings just keep coming.

If the case is so strong for action, why is it not happening?
TR: A couple of things. Firstly, the case is strong but needs to be made; that’s industry’s job and we have more work to do. Secondly, while the economics are equally strong, the market failures are enormous. If governments do not tackle these market failures systematically, the market will not deliver the carbon savings.

What are we talking about when we talk market failures?
TR: A good example is that while you save up to 12 times your investment with energy efficiency in buildings, you have to make the investment day one, and wait to get the savings over time. A lot of people and businesses just don’t have the cash up front and so can’t get the savings. Another is that we need a well-trained work force to deliver energy efficiency measures, but the building chain is full of micro companies that rightly have other priorities than retraining. Governments need to step in and help, if they want to decarbonise buildings.

Governments maybe need to, but are they?
TR: Most aren’t but some are really starting to push things forward. The UK is looking at creating the PAYS (Pay As You Save) scheme, which will take the savings over time and bring them to day one of the project, thus solving the pay today, save tomorrow dilemma and turning it into pay today, save today. Australia has just launched a free roof insulation scheme for all homes with no insulation (circa 2.5 million) with the government deciding that the potential energy savings are so high, it makes macro economic sense to simply invest as a country. Back in Europe, France is developing training programmes to get the chain ready for the challenge and, over in the UK, the government has launched the Zero Carbon Hub to put in place a full plan to get the building chain ready for delivering zero carbon buildings. Things are happening; good practice is being created, but we need more ambition from more governments.

So what do you want to see?
TR: Frankly, I want to see all governments, both developed and developing, to recognise that buildings won’t decarbonise themselves, but that strong action is needed to address market failures. Each country needs to engage with the building chain around the table and agree a plan of action that addresses financing, training and better mandatory standards for both existing and new buildings. The prize is so huge that I still find it hard to believe that more effort is not being made.

How about the look of new buildings in the future, an age of modernity?
TR: First and foremost, in developed countries, most buildings standing today will still be standing in 2050 and making them low carbon doesn’t need to change the face of our cities. But in developing countries things are different; in India, for example, 70% of office buildings expected to be standing in 2050 are yet to be built. If we want these buildings to be low energy, then while it’s vital that developed countries show real leadership and put in place very low energy and carbon standards for new build, developing countries will also need to tackle the market failures and put in place and enforce ambitious standards. But for once, there is no need for developing countries to lag behind on this, the technology for delivering low energy buildings is available and mostly very cheap. With it easier to build it right than to put it right, in some ways developing countries are better placed to have a better and much lower carbon built environment by 2050 but they need to start now.

How about Knauf Insulation, what are you doing?
TR: Having just launched a new range of insulation, with a revolutionary bio-based binder that has a 70% reduction in embodied energy, we are living our strapline, it’s time to save energy. This new binder takes our insulation to new levels of sustainability and as a move towards low energy buildings also needs to be a move towards more sustainable buildings, we are rightly proud of this development. Of course there is more we can do and will do over the coming months and years.

Knauf Insulation
W: www.knaufinsulation.com