Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Energy-Efcient Policy in

the Built Environment: From

Formulation to Implementation

Doi: 10.30573/KS--2023-WB04

December 2023

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

About KAPSARC

KAPSARC is an advisory think tank within global energy economics and sustainability

providing advisory services to entities and authorities in the Saudi energy sector

to advance Saudi Arabia's energy sector and inform global policies through

evidence-based advice and applied research.

This publication is also available in Arabic.

Legal Notice

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“Document”) shall not be used without the proper attribution to KAPSARC. The

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of KAPSARC. KAPSARC makes no warranty, representation or undertaking whether

expressed or implied, nor does it assume any legal liability, whether direct or indirect,

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is contained in the Document. Nothing in the Document constitutes or shall be implied to

constitute advice, recommendation or option. The views and opinions expressed in this

publication are those of the authors and do not necessarily reect the ofcial views or

position of KAPSARC.

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Building energy efciency is a critical component of efforts to address climate change and achieve

sustainable development and can potentially reduce greenhouse gas emissions, save money,

lower energy bills, create new jobs, and improve occupants’ indoor comfort and quality of life. By

stimulating and implementing energy-efcient building strategies, countries may make signicant progress

toward achieving their climate targets. This brief summarizes the discussions carried out during a workshop

jointly hosted by King Abdullah Petroleum Studies and Research Center (KAPSARC) and Gulf University

for Science and Technology (GUST).

The workshop sought to raise awareness about the importance of energy-efcient policy in the built

environment, providing a platform on which participants can share their experiences and ideas on this

critical topic. The workshop offered a comprehensive overview of the drivers and promises of energy

efciency in buildings, as well as the policy mix needed to improve energy efciency.

The sessions emphasized the importance of designing energy-efcient buildings and implementing policies

that promote energy conservation. Participants discussed opportunities and challenges in terms of achieving

energy efciency and explored policy options for improving energy efciency in the built environment.

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

In March 2023, the King Abdullah Petroleum

Studies and Research Center (KAPSARC)

and Gulf University for Science and

Technology (GUST) cohosted a workshop titled

“Energy-Efcient Policy in the Built Environment:

From Formulation to Implementation.” The

workshop was part of the KAPSARC’s Building

Energy Efciency project. The workshop focused

on the theme of formulating and implementing

energy-efcient policies in the built environment.

The workshop explored the latest developments in

energy-efcient policies and strategies and their

performance in Saudi Arabia as well as worldwide.

The main objectives of this workshop were the

following:

Raise awareness about the importance of

energy-efcient policy in the built environment.

Share best practices and innovative solutions in

the eld of energy-efcient policy.

Explore the formulation and implementation of

energy-efcient policies in Saudi Arabia and GCC

countries.

Discuss the challenges and opportunities in

terms of the implementation of energy-efcient

policies.

The workshop consisted of two main sessions.

The workshop’s rst session was titled “Energy

Demand in the Built Environment: Drivers and

Conservation Opportunities” and focused on the

drivers of energy demand in the built environment

and the conservation opportunities available.

The session covered topics such as the factors

contributing to high energy demand in buildings,

the impact of energy use on the environment, the

potential for improved energy conservation through

building design and technology, and the importance

of a systematic approach that operates from the

building level to the district level.

More specically, the rst session focused on

addressing the importance of designing buildings

with energy-efcient features, such as insulation,

ventilation, and shading, and of integrating

renewable energy; the drivers, benets, and energy

conservation opportunities in GCC countries and

globally; strategies for encouraging energy-efcient

behavior among occupants, such as education

and incentive strategies; and the challenges and

opportunities in terms of achieving energy efciency

at the city level using smart technologies. The

following takeaways emerged from the presentations

and the follow-up discussions in this session.

Building energy demand is inuenced by many

drivers, including socioeconomic characteristics,

design, construction, operation, technology, and

behaviors.

To understand the impact of such drivers,

accurate energy, socioeconomic, and building

data are needed.

Energy efciency has many benets for both

individuals and society.

Energy conservation opportunities include

passive design strategies, energy-efcient

appliances and systems, and improved occupant

behavior.

A systematic energy-efcient approach at

the city level using smart technologies has

unique energy conservation challenges and

opportunities.

The second session was titled “Policy Options to

Improve Energy Efciency in the Built Environment”

Key Points

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

and explored policy options for improving energy

efciency in the built environment. The session

covered topics such as the role of policies in

promoting energy efciency, the importance of

stakeholder engagement, and case studies of

successful policy implementation.

More specically, the second session focused on

addressing the successful and current energy-efcient

initiatives in Saudi Arabia and globally, the importance

of setting energy-efcient targets and establishing

policies through which to achieve them; the role of

nancing mechanisms such as tax incentives, and the

use of regulations such as building codes in promoting

a sustainable built environment; strategies for engaging

stakeholders, such as education and outreach, to

promote energy-efcient policy implementation; and

the importance of considering a lifecycle or broader

system perspective in energy-efcient policy design

in the built environment. The following takeaways

emerged from the presentations and follow-up

discussions in this session.

Energy-efcient policies can reduce the levels of

energy consumption and GHG emissions while

also providing economic and social benets.

Options for improving building energy efciency

include market understanding, research

and development, nancing mechanisms,

regulations, and stakeholder engagement.

Effective policy implementation requires

coordinated approaches on the demand side

and collaboration among stakeholders, including

the government, industry, and civil society.

Key Points

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

As the world grapples with the urgent challenge

of climate change, many policymakers are

looking for practical solutions to reduce

GHG emissions. Energy efciency is cost effective

and constitutes a genuine asset for accelerating the

energy transition pace and achieving a low-carbon

future.

Buildings are among the largest contributors to

worldwide energy consumption and greenhouse

gas emissions. The built environment accounts

for approximately 47% of global CO2 emissions

and nearly half of Middle Eastern CO2 emissions

(Figure 1). This nding is due mainly to the need for

energy to heat, cool, and power buildings, as well as

the materials used in their construction.

Understanding energy demand dynamics and

improving energy efciency in buildings has,

therefore, become an increasingly important priority

for policymakers worldwide in an effort to mitigate

climate change (Belaïd et al. 2022). Investing in

building energy efciency offers many benets for

both individuals and society.

Background: Energy Efciency in

Buildings and Its Contributions to

Climate Objectives

Figure 1. Built environment CO2 emissions globally and in the Middle East.

Source: Authors’ design using IEA and Architecture 2030 data.

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

One of the key benets of building energy

efciency is its potential to reduce GHG emissions

signicantly. As mentioned earlier, buildings are

responsible for a large portion of global energy

consumption and CO2 emissions. By making

buildings more energy efcient, energy consumption

and emissions can be reduced, which can contribute

to mitigating the negative impacts of climate change

(Belaïd 2022b; Belaïd and Massié 2022, 2023).

Improving energy efciency in buildings also has

the potential to save money, lower energy bills,

and increase affordability (Belaïd 2022a), which

can be particularly important for those low-income

households or businesses that may struggle to

afford high energy bills. Moreover, building energy

efciency has the potential to create new jobs in

the green economy. Improving energy efciency

in buildings requires the installation of energy-

efcient systems and materials, which can create

jobs in terms of the manufacturing, installation,

and maintenance of these systems. Additionally,

improving energy efciency in existing buildings

requires upgrading and renovation, which can offer

employment opportunities for local contractors

and skilled tradespeople. In addition to the

abovementioned potential benets, building energy

efciency can also improve comfort and quality

of life for the people living and working in these

buildings. Energy-efcient buildings can provide

more comfortable and healthy indoor environments

with improved ventilation, lighting, and temperature

control, which can lead to better health outcomes,

increased productivity, and a better quality of life.

Despite the numerous benets of energy

efciency in buildings, economic agents may not

be investing as much as they could in energy-

efcient upgrades. This situation can be due to a

range of reasons—commonly known as the energy

efciency paradox—including a lack of awareness

and information about the benets of energy

efciency, concerns about the upfront costs of such

investment, limited access to nancing, a lack of

trust in energy-efcient industry, the uncertainty and

irreversibility of investments, principal-agent issues,

and competing priorities (Belaïd, Youssef, and

Lazaric 2020; Economidou et al. 2020; Gillingham

et al., 2009; Labanca and Bertoldi 2018; Linares and

Labandeira 2010).

Many individuals may not realize that investing in

energy efciency can pay off in the long run through

reduced energy bills, improved comfort of indoor

spaces, and the mitigation of the negative impacts

of climate change. However, a lack of awareness

and information about the benets of energy

efciency can prevent individuals from making such

investments.

The upfront cost of energy-efcient upgrades can

also be a signicant barrier for some individuals.

Purchasing and installing solar panels or upgrading to

a high-efciency HVAC system can be expensive, and

not every individual may have the nancial resources

to make these investments. Additionally, limited

access to nancing can make it difcult for individuals

to pay for energy-efcient upgrades over time.

Concerns about the quality and reliability of energy-

efcient products and services may also prevent

individuals from investing in energy efciency

(Bakaloglou and Belaïd 2022). Some individuals

may hesitate to invest in energy-efcient upgrades

without rst seeing evidence that they will deliver the

promised energy savings.

Finally, competing priorities and nancial constraints

can also prevent individuals from investing in energy

efciency. For example, an individual may be more

focused on paying off debt or saving for retirement

than on investing in energy-efcient upgrades.

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

In sum, addressing these barriers to energy-efcient

investments requires a combination of education,

nancial incentives, and policy interventions.

Raising awareness and providing access to

nancing and other resources can empower people

to invest in energy-efcient improvements, resulting

in cost savings, an improved indoor environment,

and reduced greenhouse gas emissions.

Session 1: Energy Demand in the

Built Environment: Drivers and

Conservation Opportunities

Buildings consume a signicant portion of world

energy and are responsible for a substantial

proportion of GHGs. As many countries strive

toward achieving global climate goals, addressing

the energy demand level in buildings and nding

ways to decarbonize the sector are essential.

Moreover, improving knowledge about the context

of building energy efciency is crucial to provide a

baseline for tracking the progress and evaluating the

effectiveness of energy-saving measures.

This session explored the various factors that

contribute to the high energy demand level in the

built environment, such as building design, lighting,

heating, cooling, and ventilation systems, as well as

the behavior of building occupants. The speakers

discussed the challenges of reducing energy

demand while maintaining occupant comfort and

productivity; also highlighted the environmental

impacts of energy use, including greenhouse gas

emissions; and discussed the potential for energy

conservation through building design and technology.

The speakers shared case studies of successful

energy conservation efforts in the built environment

and discussed the role of smart technologies and

multiscale renovation approaches at the city level.

Speakers and participants also highlighted

the following:

Achieving climate objectives in the Middle

East requires the decarbonization of the built

environment. By 2040, the population in the Middle

East is projected to increase by 180,000,000 people1

(PopulationPyramid.net). To accommodate this level

of population growth, 60 million new housing units,

540 thousand new hospital beds, 73 thousand new

schools, as well as new public and commercial

buildings and associated infrastructures, will be

required. With approximately half of the direct

Middle East CO2 emissions attributed to the built

environment, how fast the sector is decarbonized

may very well determine whether the country can

meet the Paris Agreement’s planetary warming

targets. Hence, how the built environment is

planned, designed, and constructed may dictate

decarbonization outcomes.

Achieving net-zero carbon in the built environment

requires a two-step process: (1) planning, design,

and construction and (2) renewable integration

(Figure 2). It is also essential to focus on and

prioritize the decarbonization of large buildings,

which represent 50% of total emissions (Figure 3).

Finally, the integration of renewable energy

constitutes a genuine solution to power the built

environment. We can easily power any building in

the world with a free energy source if we capture

it and store some of it to use in the off hours or

evening (Figure 4).

Kuwait needs to develop a comprehensive

energy policy to achieve this goal. In Kuwait,

energy efciency has been pursued by the Kuwait

Institute for Scientic Research (KISR) since the

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

1 https://www.populationpyramid.net/world/2022/.

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Figure 2. Ways to achieve carbon neutrality in the built environment.

Figure 3. Total emissions by building size.

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Figure 4. Total emissions by building size.

early 1980s, as the rst energy conservation code

went into force in 1983. Kuwait has also pursued

solar energy since the early 1970s, but this pursuit

was put on hold due to the high system prices and

low oil prices. Accordingly, the KISR focused on

pursuing energy efciency by conducting several

applied research projects, including updating

the national energy conservation code, energy

auditing, demand side management, home

automation, and the assessment of the efciency

of air-conditioning systems, among others.

Later, the KISR, in the early 2000s, continued its

applied research on solar energy and invested

in conducting demonstration projects targeting

renewable energy. Despite the measures taken

thus far, Kuwait still has room to enhance its

energy efciency, reform its energy needs, and

decrease its carbon footprint.

Buildings are a signicant energy consumer in

Saudi Arabia, with approximately 47% of electricity

consumption in the country being attributed to the

residential sector (Figure 5). In addition, the energy

demand for buildings is expected to increase

signicantly in the coming years due to population

growth and urbanization. An improvement in

the energy efciency of the building sector may

contribute up to a 30% electricity reduction

by 2060.

Energy consumption is a crucial aspect of every

sector, and understanding its drivers is essential

for effective policymaking. Accurate data on

energy, socioeconomic factors, and buildings are

necessary to comprehend the impact of these drivers

(Belaid, Youssef, and Omrani 2020; Lévy and Belaïd

2018; Tsemekidi et al. 2019). However, the effect of

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

these drivers can be mitigated through efciency

improvements to limit or reduce total energy

consumption. Decomposition and econometric

modeling are valuable tools for identifying the impact

of drivers and causality, enabling policymakers to

implement the appropriate strategies. By analyzing

and assessing these drivers, policymakers can

develop effective strategies through which to address

the issue of energy consumption in buildings.

Scaling up smart building solutions for districts

is crucial, and comprehensive solutions play a

vital role in achieving this goal. The integrated

application of smart building methods has become

increasingly signicant in the contemporary

context. This approach encompasses not only the

building itself but also extends to the district level.

Smart technology plays a crucial role in enabling

this transition. By virtue of the Internet of Things

(IoT) and crowdsourcing, the data collection and

service layers can bridge the gap between physical

and digital realms, which are the essential pillars

of smart city ventures. For example, brownelds

can be converted into eco-friendly neighborhoods

using smart technologies. Such transformation

encompasses the deployment of sustainable energy

systems, effective waste management regimes, and

other environmentally friendly initiatives.

Session 2: Policy Options to

Improve Energy Efciency in the

Built Environment

This session focused on policy options for improving

energy efciency in the built environment. The

speakers discussed the importance of stakeholder

engagement in the policy development process,

including the involvement of building owners,

developers, designers, and occupants. They also

discussed the role of policies in promoting energy

efciency and highlighted examples of successful

policy implementation from Saudi Arabia and

worldwide. The speakers shared insights into

how to design effective policies, including the

use of incentives, regulations, and market-based

approaches. Furthermore, the speakers discussed

the challenges of policy implementation and

Figure 5. Electricity consumption in Saudi residential buildings.

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

identied strategies through which to overcome

them.

Many strategies and technologies are available

to improve building energy efciency, including

envelope insulation, high-efciency HVAC systems,

building automation, and renewable energy

integration. Some of these strategies can be

relatively low cost and easy to implement, such as

weather sealing and lighting upgrades, while others

may require more signicant upfront investments,

such as deep renovation and solar panel or

geothermal system installations.

Governments and international organizations

have recognized the importance of building

energy efciency and have developed policies

and programs to support its implementation. For

example, many countries have established building

codes and standards that require new buildings to

meet specic energy-efcient requirements. Some

countries also offer nancial incentives or support

programs to encourage building owners to invest in

energy-efcient improvements.

Speakers and participants also highlighted

the following:

Saudi Arabia has been very active during

recent decades and has implemented a range of

initiatives and programs through which to promote

energy efciency in the building sector as part of its

broader National Energy Efciency Program (NEEP)

(Figure 6). The NEEP program aims to reduce

the country’s level of energy consumption, with a

particular focus on improving energy efciency in

buildings (Ministry of Energy 2023).

To oversee the implementation of energy-efcient

initiatives, the Saudi Energy Efciency Center

(SEEC) was established in 2010. One of the

SEEC’s main objectives is to rationalize energy

consumption in the Kingdom and promote energy

efciency in buildings by improving building design

and construction practices. The SEEC has also

developed many regulations and introduced building

codes that require new buildings to meet specic

energy-efcient standards, including requirements

for insulation, lighting, and HVAC systems.

The SEEC has also been making efforts toward

improving energy efciency in existing buildings

through renovation and retrotting programs, such

as the High-Efcient Air Conditioning Initiative.

These programs aim to upgrade the buildings’

envelopes, HVAC systems, lighting systems, and

other equipment to reduce energy consumption.

There has been a focus on human capacity building

and awareness campaigns to support these efforts.

The SEEC has launched various training programs

and established centers of excellence in energy

efciency at universities to develop the skills and

knowledge necessary to design and construct

energy-efcient buildings. There has also been a

focus on raising awareness among building owners

and occupants about the benets of energy efciency

through public awareness campaigns and outreach

activities. Since 2004, more than 25 energy-efcient

campaigns have been developed, leveraging both

traditional and digital means of communication.

Energy audits are also becoming more

commonplace in Saudi Arabia. Both government

and private-sector organizations are conducting

audits to identify areas where energy efciency can

be improved in buildings. By identifying areas for

improvement, building owners can take steps to

reduce their energy consumption levels and lower

their energy bills.

Implementing a sustainable national energy

policy is crucial for enhancing building energy

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Figure 6. Efforts toward rationalizing energy consumption in the Saudi building sector.

efciency in Kuwait and the GCC region. This

policy should involve stakeholders from the beginning

and focus on both the demand and supply sides.

Subsidy reform should be implemented, including

targeted subsidies and public awareness campaigns.

Subsidies must be reformed in a targeted manner,

providing help to those who need it most and

encouraging a shift toward energy-efcient practices.

Public awareness campaigns can boost consumers’

consciousness of the importance of saving energy

and encourage them to conserve energy.

Moreover, investment in energy-efcient

technologies, such as LED lighting and smart

meters, is essential. Efcacy standards and

regulations should be established, along with

sustainable energy technologies like solar panels.

Research and development funding should support

innovation in energy efciency. The prioritization of

energy efciency in air conditioning and appliances

is also vital. By implementing these measures,

Kuwait and GCC countries can achieve signicant

energy savings and promote sustainability in their

buildings.

Building energy efciency can be achieved

through three broad types of incremental

improvements (see Figure 7). First, new buildings

can be designed with efciency considerations,

which means that builders should consider natural

lighting and orientation, among other factors.

Renovations and retrots can improve the energy

efciency of existing building stocks by adding

insulation and sealing doors and windows to

reduce heat loss in the winter and heat gain in the

summer. Second, energy-converting technologies,

including energy-intensive equipment like ACs or

smaller appliances and lighting, can be made more

efcient. LED lighting is more energy efcient

than is traditional incandescent lighting, and

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Energy-Star-certied appliances use less energy

than do their noncertied counterparts. Third, some

additional purchases improve the comfort level of

building spaces, such as buying a ventilation system

for better air circulation or blackout curtains for

additional protection. Smart energy management

instruments such as smart thermostats and smart

lighting systems can enable energy consumers

to gather information for better decision-making.

Other techniques include performing regular

maintenance and obtaining an energy audit. Finally,

the promotion of behavioral changes among building

occupants can reduce energy use. Simple actions

such as turning off lights and appliances when not

in use, using natural light instead of articial light,

and proactively adjusting the thermostat can all

contribute to signicant energy savings.

There are two broad types of policy approaches

adopted around the globe. These approaches are

carrot approaches, which provide nancial and/or

nonnancial incentives for the adoption of energy-

efcient measures, and stick approaches, which

are prescriptive mandates regulating behavior or

lack of action. Figure 8 provides some examples of

each approach. Most countries use a combination

of both approaches. For instance, according to the

American Council for an Energy-Efcient Economy

(ACEEE) [7], the Netherlands ranks rst in building

efciency efforts, which is attributed to the country’s

varying levels of the carrot-and-stick approach.

For example, the country has a building upgrade

policy that sets standards for home insulations

and other norms/regulations at the local level,

where noncompliance is ned. The government

Figure 7. Incremental steps to achieve building energy efciency.

Figure 8. Examples of carrot and stick approaches for incentivizing energy efciency.

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

also provides several nancial incentives, such as

subsidies, loans, and information provisions, which

are designed differently for different sectors (e.g.,

property owners, associations, and corporations).

In the Netherlands, policy incentives are also

available for the supply side, particularly

encouraging innovations (e.g., digitalization and

circular systems) in the construction sector.

A cohesive and interconnected approach is

essential for achieving building energy efciency

targets. Such an approach can be considered through

the “7 Ds” framework, which includes decoupling,

decarbonization, decentralization, digitization,

disruption, desilos, and desirability. First, decoupling

energy consumption from economic growth entails

breaking the traditional association between economic

development and increased energy usage. By

implementing energy-efcient technologies, practices,

and behavior changes, we can achieve economic

progress without a corresponding surge in energy

consumption. Second, decarbonizing energy sources

is vital for reducing GHG emissions. Integrating

renewable energy sources, such as solar and wind

power, reduces the reliance on fossil fuels and

promotes a cleaner and more sustainable energy

mix. Third, decentralizing energy production involves

transitioning from centralized energy systems to

localized generation. By embracing onsite renewable

energy generation and implementing microgrids,

energy loss during transmission can be minimized,

resulting in improved energy efciency. Fourth,

digitizing energy management through advanced

technologies enables real-time monitoring, data

analytics, and automation. Smart building management

systems, IoT devices, and energy-efcient appliances

empower energy conservation, optimize energy use,

help identify areas for improvement, and enhance

overall energy performance.

Fifth, embracing disruption and innovation allows

for the exploration of emerging technologies and

novel solutions. Energy storage and advanced

energy management systems represent disruptive

innovations that can unlock new possibilities and

drive greater energy efciency. Sixth, breaking down

silos and promoting cross-functional collaboration

are essential for achieving collective energy goals.

Fostering cooperation between stakeholders

provides a real opportunity for them to share

knowledge, leverage diverse expertise, and develop

integrated energy solutions for maximum efciency.

Seventh, creating a desirable built environment

that reconciles energy efciency and occupant

comfort can foster a healthier and carbon-neutral

building sector. This concept ensures that buildings

not only are energy efcient but also provide

comfortable, healthy, and sustainable spaces for

occupants. Incorporating these “7 Ds” into building

energy policy practices has the potential to unlock

signicant energy savings.

Attaining building energy efciency is the rst,

but not the only, step in achieving building

decarbonization. Although energy efciency has

economic and environmental benets, behavioral

studies suggest that building occupants often

tend to use energy-converting technologies more

intensively after efciency upgrades, thereby

eroding the benets of energy savings, compared to

before such upgrades. The resulting phenomenon,

referred to as the energy rebound effect, has been a

popular topic of research in energy economics. If the

rebound effect is present and strong enough, then

policymakers should adopt behavioral strategies

through which to affect actions instead of just relying

on nancial signals.

In conclusion, while nations are trying to achieve

the best rate of energy efciency, they should also

strategically consider electrication (e.g., switching

from natural gas to electricity) and cleaner energy

sources (e.g., large-scale wind farms or solar

panels) to support their net-zero emission goals.

Background: Energy Efciency in Buildings and Its Contributions to Climate Objectives

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Overall, the promotion of energy efciency requires

the following steps: (1) analyze and understand the

market, (2) improve information and benchmarking,

(3) stimulate research and development, (4) set

performance standards, and (5) mobilize resources

and scale up.

The consideration of a lifecycle or broader

system perspective in policy design for energy

efciency in the built environment is important.

Tackling embedded carbon in construction materials

becomes equally important, at least in the context of

pursuing the dual objectives of decarbonization and

energy conservation. The presenter highlighted that

public policy in the built environment could inuence

the upstream decarbonization efforts of construction

materials such as steel, aluminum, cement, and

concrete. An example of such a disruption would

be the green public procurement pledge under the

industry deep decarbonization initiative of the clean

energy ministerial (IDDI), whereby governments

have pledged to reduce the embodied carbon

emissions of all major public construction projects

by 2050, in line with a 1.5C global warming

trajectory. Such measures could be introduced in

a stepwise manner to create lead markets for low-

emission construction materials.

Future Work and the Way

Forward

As energy efciency becomes an increasingly

important consideration in the built environment, many

research areas could help improve our understanding

of how to rationalize energy consumption and promote

conservation in the built environment.

A major area of research that has attracted

considerable attention in recent years is the

promise of smart building technologies in driving

energy efciency. Investigations could focus on the

effectiveness of various smart building technologies,

such as occupancy sensors, lighting controls, and

smart thermostats, to identify the most effective

solutions for reducing energy consumption in buildings.

Behavioral interventions are another potential

avenue through which to promote energy efciency

in the built environment. Policymakers could consider

the development of various behavioral interventions,

such as feedback systems, social norms, boosts,

and information campaigns, to promote energy-

efcient behavior among building occupants.

Effective energy-efcient policy design is another

area of focus that could help promote sustainability

in the built environment. Policymakers should

investigate the role of incentives, regulation, and

market-based approaches in promoting energy

efciency and identify the most effective innovative

business models and policy solutions in terms of

their ability to rationalize energy consumption in

buildings.

Another area of investigation that could improve our

understanding of energy use in the built environment

is energy modeling. Policymakers should conduct

research to develop robust energy-modeling tools

that accurately predict energy use in buildings,

which could be achieved by using machine learning

algorithms and other advanced modeling techniques

to improve energy model accuracy.

Ultimately, energy storage systems are a promising

type of technology for promoting energy efciency

in the building sector. Efforts should focus on

developing various energy storage technologies,

particularly batteries, ywheels, and thermal energy

storage, to identify the most effective solutions for

storing energy, enabling load shifting, providing

exibility, and optimizing costs.

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Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

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Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

About the Workshop

The KAPSARC held this workshop in

collaboration with the Gulf University of

Science and Technology (GUST) as part of

the KAPSARC’s Building Energy Efciency project.

The event was held on Wednesday, March 15,

2023, at GUST University in Kuwait. The workshop

featured a panel of experts in the eld of energy-

efcient policy, who shared their knowledge and

experiences with participants.

The meeting included more than 35 participants.

The speakers at the workshop were as follows:

Mohamad Hejazi – Climate and Sustainability Program

Director, KAPSARC

Kamaludin A Dingle – Director of Graduate Studies &

Research

Fateh Belaid – Fellow, KAPSARC

Edward Mazria – Fellow of the American Institute of

Architects, CEO, Architecture 2030

Foutouh Al-Ragom – President of the Association

of Energy Engineers, Kuwait Institute for Scientic

Research

Mohammad Al-Dubyan – Research Lead, KAPSARC

Paolo Bertoldi – Senior Expert, EU Commission

Adel Ben Youssef – Professor, Nice Sophia Antipolis

University

Hakam Zummo – Building Department Manager, SEEC

Abdulaziz Alsubaihi – Building Department Manager,

SEEC

Salem Alhajraf – Founder and CEO of Edama Consult

Benoit Lebot – French Ministry of Energy Transition

Mahelet Fikru – Missouri University of Science and

Technology

Tareq Emtairah – Director of the Energy Department

at UNIDO

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Notes

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Notes

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

Notes

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

About the Authors

Fateh Belaïd

Mohammad Aldubyan

Fateh Belaïd was a full professor of economics at Lille Catholic University and

director of the Smart & Sustainable Cities research unit. Fateh has also held

various positions at the French Scientic and Technical Center for Building

and led multiple collaborative projects for the French Ministry of Ecological

Transition and the European Commission. He is an energy and environmental

economist drawing from the elds of applied microeconomics, energy

modeling, and econometrics.

He has published widely on household energy consumption, energy-saving

behaviors, individual preference and investment in energy efciency, energy

poverty, renewables, and energy policy. He received a habilitation for

supervising doctoral research from Orléans University, a Ph.D. in Economics,

an M.S. in Applied Economics & Decision Theory from Littoral University, and

an engineering degree in statistics.

His work has been published in journals including Ecological Economics, The

Energy Journal, Energy Economics, Economic Surveys, Energy Policy, and

Environmental Management

Mohammad is a research lead in KAPSARC’s Climate & Sustainability

program. His research focuses on energy efciency and energy demand in

buildings. He is currently leading the Residential Energy Model (REEM), which

simulates residential energy demand and estimates the impact of energy

efciency programs on Saudi Arabia’s housing sector. He also leads the

long-term KAPSARC Oil Market Outlook (KOMO) in buildings and agriculture

sectors.

Mohammad holds an M.Sc. in Renewable and Clean Energy from the

University of Dayton, Ohio and an M.Sc. in Economics from Purdue University,

West Lafayette.

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation

About the Project

The workshop is part of the ongoing KAPSARC Building Energy Efciency project, the primary purpose

of which is to implement a holistic approach over the whole value chain to identify low-energy-demand

pathways in the building sector needed to meet the challenges associated with reducing energy

emissions in Saudi Arabia. The project expects to cover a broad range of topics using innovative

approaches and empirical studies to answer the following questions. (i) What are the challenges, barriers,

and drivers of improving building energy efciency in Saudi Arabia? (ii) What are the key enablers

(investment, nance, behavioral interventions, etc.) for building energy efciency in the Kingdom? How

can we effectively federate and engage with the whole community of stakeholders and accelerate the

adoption of new business models for energy-efcient buildings in the Kingdom? (iii) What are the critical

social and economic benets of energy-efciency investments in buildings, and who will benet from

these investments?

Mohamad Hejazi

Mohamad Hejazi is the Program Director for the Climate and Sustainability

Program at KAPSARC. He also leads the Climate Change Adaptation and

Mitigation Partnership (CAMP) project, and his work focuses on climate

change research, climate impacts and adaptation, climate mitigation,

integrated assessment modeling, and energy-water-land nexus. Prior to

joining KAPSARC, Mohamad worked as a senior research scientist at the

U.S. Department of Energy’s Pacic Northwest National Laboratory, where

he served as the principal investigator for the Global Change Intersectoral

Modeling System project, a multi-million-dollar project that includes over 40

interdisciplinary researchers across many institutions. He has also led and

contributed to projects with the World Bank, Inter-American Development Bank,

US-AID, US-EPA, USGS, NASA, and NSF-INFEWS. Mohamad has authored

over 100 journal publications, and he has also served as a contributing author

to the Fourth U.S. National Climate Assessment, and the AR6 IPCC WG III

report on the mitigation of climate change. Mohamad holds a B.S. and M.S.

from the University of Maryland, College Park, and a Ph.D. from the University

of Illinois, Urbana-Champaign.

Energy-Efcient Policy in the Built Environment: From Formulation to Implementation