Localization is critical in the journey to better energy efficiency

Fighting climate change is fundamentally a global effort. It’s not just concerns about the future of the environment that is driving change – it’s also the immediate impact of costs. Across multiple regions, energy prices are increasing – motivating many organizations to prioritize ways to reduce their energy use. The statistics below illustrate this trend.

• Global energy consumption increased in 2023 by 2.2%, faster than the 2010-2019 average growth rate of 1.5% per year.^[1]
• North America: U.S. prices in 2023 were approximately 15% higher than in 2019.^[2]
  
• Europe: Large increases reported in the Netherlands (+86%), Czechia (+83%), Poland (+35%) and Germany (+20%).^[3]
• APAC: Wholesale prices in Japan and India also remained above 2019 levels^[4]

Tackling global climate change and achieving greater energy efficiency will need local solutions and efforts.

1. Climate: Identifying which technologies to deploy is dependent on local weather and temperature conditions. In generally temperate climates like the United Kingdom or New Zealand which are also plentiful with geothermal energy sources, ground source or air source heat pumps offer potentially exciting alternative heating and cooling options. In the Middle East, by contrast, cooling is a priority, with an emphasis on HVAC optimization to boost efficiency.
2. Regulation and certifications: Leveraging the mandated ESG regulatory requirements that are included in building codes or compliance-based reporting, can allow businesses to seek accreditations, such as BREEAM in the United Kingdom, the United States Green Building Council’s LEED certification, or the Green Star rating of the Green Building Council of Australia, of which Honeywell worked to help the Sydney Opera House become one of the first UNESCO World Heritage-listed buildings to receive a 6 Star rating._[5]Mandatory regulation examples include a 4.5 NABERS rating across all government._[6] leased spaces and Singapore’s BCA driven Green Mark 2021 certification for kw/RT Gold and Platinum ratings. 
3. Carbon taxes: Understanding carbon taxes which can impact energy efficiency initiatives is critical in multiple markets from Europe to Asia and beyond. For example, Singapore, is increasing its tax from S$5 to S$25/t CO₂ this year to S$45/t CO₂ in 2026 and 2027, and to reach S$50-80//t CO₂ by 2030.^[7] This means organizations that will pay a carbon tax of up to $100k/year in 2024 could see rates increase up to $1.5M/year by 2030, assuming only current efficiency measures are maintained, monitored and validated. This complicates the quest for energy efficiency alone and organizations must move beyond cutting energy use to considering associated carbon emissions.
4. Incentives: Taking advantage of government incentives – at a local, state or national level – can help cover energy improvement projects.  For example, the state of Connecticut has a demand response programs to encourage businesses to install renewable generation and battery energy storage systems. New Zealand announced it will work with private organizations to install electric vehicle charging stations at sports facilities, parks and other recreation centers using government land to install them – without extra costs to taxpayers.^[8]A recent push from the California government to update its mandatory Green Building standards for non-residential buildings with regards to the total number of EVSE installations for Level 2 and DC Fast chargers means building owners must re-assess their total grid capacity and create an allowance for these EV charging stations.^[9]

Layer on Technology to Manage Every Building System in One Place

Once you have a better understanding of local regulations, carbon taxes and incentives then it’s time to start thinking about technology to help manage your energy use. Facility managers need to start with the foundation of energy management – the building management system (BMS) – to gain better control. Adding advanced software controls and solutions for power resilience can enable better data on how to optimize systems. Open systems that allow facility managers to integrate and automate building management, fire and life safety, and security in one place help remove operating silos and instead can help improve operational efficiency.

To find out more about how Honeywell can help you reimagine energy efficiency for your buildings, click here or talk to your Honeywell representative today.

[1] Enerdata, Total energy consumption, January 2024 [Accessed August 6, 2024]

[2] IEA, Electricity 2024, May 2024 [Accessed August 6, 2024]

[3] Eurostat, Electricity and gas: EU prices decrease after 2022 surge, April 2024 [Accessed August 6, 2024]

[4] IEA, Electricity 2024, May 2024 [Accessed August 6, 2024]

[5] Honeywell, Honeywell supports Sydney Opera House to reach six star Green star rating, May 2023 [Accessed August 6, 2024]

[6] NABERS, Energy Efficiency in Commercial Buildings, May 2022 [August 6, 2024]

[7] Mayer Brown, SINGAPORE’S CARBON REGULATIONS: PAVING THE WAY FOR THE GREEN PLAN 2030, February 2024 [Accessed July 23, 2024]

[8] The Press, Council turns to private sector for EV charging infrastructure, July 2024 [Accessed August 6, 2024]

[9] International Code Council, CHAPTER 5 NONRESIDENTIAL MANDATORY MEASURES - 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE, TITLE 24, PART 11 (CALGREEN), July 2022 [September 5, 2024]