Sustainability / Energy Investment – Trends

Energy Efficiency Investments Still Strong Despite Recession

Despite a global recession, investment levels in energy efficiency have remained strong according to the Energy Efficiency Indicator (EEI) released today (6/3/10) by Johnson Controls provider of products, services, and solutions that increase energy efficiency in buildings.

The survey of more than 2,800 executives and managers responsible for making investments and managing energy in commercial buildings worldwide found that 56% of respondents say they have invested the same or more in energy efficiency over the last 12 months. A regional comparison indicates that respondents have invested the same or more in energy efficiency in China (60%), followed by the United States (59%), Europe (55%), and India (45%).

“These survey results indicate the growing importance on having energy efficient buildings that are cost effective and sustainable,” said Dave Myers, president, Building Efficiency, Johnson Controls.

Across all regions surveyed, energy management is considered an important priority among commercial decision makers (92%). Notably, respondents from India (85%) and China (80%) were more likely to consider energy management very or extremely important as compared to those in Europe (55%) and North America (53%).

“Despite the recession, decision makers have put efficiency high on their agendas for 2010, especially those in India and China,” said Clay Nesler, vice president, Global Energy and Sustainability, Johnson Controls. “It’s encouraging to see that the financial returns and environmental benefits of energy efficiency investments are recognized in all regions around the world.”

The EEI tracks energy management priorities, practices, and investment plans among decision makers responsible for managing commercial buildings and their energy use. Johnson Controls has conducted the EEI survey in North America for the last four years. This year marks the first time a global survey has been conducted across Canada, China, France, Germany, India, Italy, Poland, Spain, United Kingdom, and the United States.

While motivations differ from region to region, cost savings is consistently the most important factor driving investments with 97% of respondents identifying it as significant. “It comes as no surprise that global business leaders are looking for responsible ways to cut energy costs. On average, the survey found that decision makers expect a nine percent energy price increase over the next year,” said Nesler. Eighty-eight percent of respondents believe energy prices will rise in China, compared with 79% in India, 68% in Europe, and 64% in North America.

After cost savings, lowering greenhouse gas emissions (74%) is the second most important motivator for energy efficiency in all regions except North America, where boosting public image (63%) and taking advantage of government/utility incentives (62%) rank higher in importance.

“In contrast to other regions, existing legislation was one of the top three factors in Europe. We believe it is indicative of the region’s leadership in energy and climate legislation compared to other parts of the world where the prospect for binding legislation remains uncertain,” said Nesler.

Globally, 63% of respondents plan to make capital investments in energy efficiency and 70% plan operating budget expenditures in efficiency programs over the next 12 months. Eighty-five percent plan to make efficiency a priority in their new construction and retrofit projects.

A total of 2,882 decision makers were surveyed worldwide during March and April of 2010, including CEOs, CFOs, real estate leaders, and facility managers from a range of organizations including small businesses, global corporations, and the public sector. The survey is managed by the Johnson Controls Institute for Building Efficiency, a new initiative of Johnson Controls, providing information and analysis of technologies, policies, and practices for efficient, high performance buildings and smart energy systems around the world

via Facility Blog » Blog Archive » Energy Efficiency Investments Still Strong Despite Recession.

About pcholakis

Exceptional cross sector domain knowledge and expertise in facilities life-cycle management and total cost of ownership applicable. Seminal thinker on TCO (total cost of ownership) applicable to the construction and facilities management industry and key professional associations - National Institute of Building Sciences (NIBS), FFC, APPA, NASFA, IFMA, COAA, Center for Job Order Contracting Excellence .... Proven ability to develop broad based “best-practices” and develop services and products for deployment via technology Broad-based experience includes: Board Member - The Center for Job Order Contracting Excellence NBIMS 3.0 Planning Committee NBIMS 3.0 Terminology Committee - Chair Noted Author for Professional Publications Facility Life-cycle Management Practices U.S. Patents – (2) Software and Business Solutions Development Central role in development of Capital Planning and Management Systems - CMPS - concept @ VFA, Inc. Strategic Business Planning Senior Consultant - RSMeans Company Inc. Staff Leadership and Development Strategic Partnering Troubleshooting / Problem Resolution CMO for leading provider of cost estimating and project management software and solutions to the DODand non-DOD Federal Government Sector, State/County/Local Governments, Education, Healthcare and software provider for RSMeans JOCWorks. Former Senior Consultant for RS Means / Reed Business Information – Strategic partnering with BIM and cost estimating software OEMs as well as large end user accounts. Established VFA as thought leader in the facilities consulting and condition assessment industry. Defined the CPMS (Capital Planning and Management Solutions) strategic concept effectively bringing it to a market that VFA dominated for years including the higher education and government segments Associations/Committees American Society of Professional Estimators American Society of Safety Engineers Association for the Advancement of Cost Engineering Construction Owners Association of America Smart Building Alliance Society of American Military Engineers Committees BIM Library Committee - National Institute for Building Sciences (NIBS) - buildingSMARTalliance™ National Building Information Model (NBIM) Standard Project Committee- buildingSMARTalliance™ Building Modeling Information Group - CSI – Construction Specifications Institute
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