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Home > By DEPARTMENTS > Leadership and Governance for Sustainability > Global Leadership

EU strategizes to save 75% energy use by 2020

Europe implements programs to help the EU save around 75% of energy by the end of 2020.

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European green buildings market to see exponential growth till 2020

Source: Frost & Sullivan
Published Jul. 1, 2008
Something to think about: "A recent survey of CEOs found that 81% of those surveyed felt that their management team did not fully support or understand the growth strategy their company was implementing..."

Green Building Goals

As all the EU member states look to reduce their energy consumption, new programes such as the Green Building Programme and the Energy Performance of Buildings Directive (EPBD) were implemented to help the EU save energy around 75% by the end of 2020.

With oil prices skyrocketing throughout Europe, the demand for alternative energy sources is paramount. Green Buildings is a fairly new concept that has been recognized as a necessary EU initiative. These new buildings serve as the catalyst across the market for building technologies and services. For the past decade this new market has garnered praise and attention as the need for energy efficiency comes to the policy making forefront.

New Green Building Energy Consumption Goals of 25%

"On an average the Green Buildings Programme aims to achieve reduction of energy consumption by 25% on all new buildings built with the traditional building materials," explains Priya Cheriyan, Analyst, Building Technologies for Frost & Sullivan. "The EPBD lays down guidelines to realize energy saving potential in the buildings sector which is estimated at 28% thereby reducing the total energy use across the EU by 11%. Hence, it is the strong catalyst for the growth of this market."

Measuring Green Buildings

While every state is aware of the need for 'Green Buildings', the term took on different meanings in the various EU states. In general, Frost & Sullivan found that the majority of States focus on reducing the energy consumed as heat and electricity for both commercial and residential houses.

These measures are implemented in different waves despite the fact that all these States are headed for energy savings around 75% by the end of 2020. With residential housing consuming an estimated 3 times more energy than commercial, the importance of green buildings is clear.

The EPBD legislation helped to clear up any inconsistencies, but full implementation differs due to the varying national programes and priorities.

Countries like Denmark, Austria, Germany, Sweden and Finland are farther along in their national implementation. This is credited to the increased awareness of the benefits of Green Buildings, as well as various programmes, such as rewards, which extrinsically motivate developers to choose Green Buildings.

For example, in Austria, constructors are rewarded €30,000 for ensuring that a building meets the Green Building requirements. Denmark leads the pack at 60% full EPBD implementation, due to the existing Building Labeling Scheme, which ensured green buildings since 1997. These countries have quickly found success.

However, in countries more concerned with nuclear power, these energy efficiency policies are slowly implemented. States like Hungary, Bulgaria, Czech Republic, Slovakia and Poland, although quite aware of the environmental importance of these measures, are less successful in its administration.

Frost & Sullivan finds that, "It is peremptory for all the EU states to follow the EPBD legislation so that a uniform system can be developed to classify buildings as green across the EU. However, there is still no defined paradigm to assess and classify buildings as Green Buildings in the EU as compared to the US. Defining the market size individually and collectively in the EU states is untenable in these circumstances."

This promising market still needs to mature.

The answer seems to lie in the uniform certification grants of buildings that comply with current standards, as well as award programmes.

As demonstrated through Austria and Denmark's success, these methods will propel the market share in the commercial and public buildings stock to reaching its full potential.

"Over the last 10 years, the green buildings market has experienced exponential growth," concludes Priya Cheriyan. "Experts are optimistic about the continued growth and evolution of this market with expected growth predictions for the next 10 years at 30%."

If you are interested in receiving more information on the European Green Buildings Market and on our Green Energy Subscription, then send an e-mail to Chiara Carella - Frost & Sullivan, Corporate Communications at chiara.carella@frost.com with your full name, company name, title, telephone number, e-mail address, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

On green technologies and green growth opportunities Frost & Sullivan will host an executive symposium this September. The symposium, titled "The Global Green Revolution 2008: Driving Growth Through Sustainable Technology and Innovation," will focus on strategies for seizing market opportunities through green technologies. It will take place on 17 September, 2008 in San Francisco, California.

Frost & Sullivan partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit www.frost.com



Edited by Carolyn Allen, owner/editor of California Green Solutions
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