six steps to efficiency leadership | briefing paper

six steps to efficiency leadership for victoria

These six ambitious yet achievable steps would address the barriers preventing Victorian households and business owners from investing in efficiency, while ensuring government resources are targeted to those most in need.

Step 1: Improve standards for residential buildings Introduce a visually simple efficiency rating system covering new and existing homes. Introduce mandatory disclosure of efficiency rating at the point of sale by 2016. Introduce minimum efficiency standards at the point of lease by 2017. Set a goal of zero net emission and water-efficient new buildings by 2020. Improve compliance regimes to ensure construction meets standards.

Step 2: Facilitate accessible and affordable finance Broaden low-income participation in the Victorian Energy Efficiency Target scheme. Extend Environmental Upgrade Agreements to residential buildings and work with local

government to access finance. Assist low-income landlords and protect tenants against rent increases and evictions.

Step 3: Create a culture of efficiency

Fund a public information campaign to build community support for action on efficiency. Support local government and community organisations to provide advice and services.

Step 4: Deliver targeted programs for those in need Fund a low-income energy efficiency program encompassing behaviour change, building upgrades and appliance replacement. Partner with utility retailers to co-finance retrofits for hardship program participants. Invest in skills and training and provide opportunities for disadvantaged job-seekers.

Step 5: Upgrade government buildings Reinstate and strengthen the Greener Government Buildings program. Upgrade Victoria’s existing public housing stock by 2025 and raise the standard for new buildings. Support community housing operators to implement efficiency and renewable energy upgrades.

Step 6: Drive improvements in non-residential buildings

Reinstate a state mandatory efficiency scheme for large energy- and water-using sites. Develop a 10-year plan for upgrading lower quality mid-tier office and retail buildings.

For the background to these actions, see the full Six Steps to Efficiency Leadership report.

Split incentive:

Tenants pay bills but

landlords have control over

quality of dwelling

240,000low income

520,000 total

RENTERS

Tenants lack control over

quality of dwelling

80,000 total

All low income

social HOUSING

NB. Low-income AND VULNERABLE HOUSEHOLDS TOTAL approximately one million

barriers

barriers

Lack of timely, trusted

information

Upfront costs unaffordable for asset-rich but cash-poor homeowners

798,000 total

245,000low income

720,000 total

320,000low income

HOMEOWNERS

with mortgage

without mortgage

six steps to efficiency leadership | briefing paper

BENEFITS OF INVESTING IN ENERGY AND WATER EFFICIENCY

Barriers to efficiency facing Victorian households

Reduce greenhouse emissions

Cutting energy demand is one of the cheapest and fastest ways to cut greenhouse emissions.

Enhance social equity

Low-income and disadvantaged households are missing out on the benefits of efficient homes because they can’t afford the upfront costs of efficiency measures, or because they rent.

Targeted investment in retrofitting could stimulate jobs growth and ease financial pressure in regions facing economic challenges such as the Latrobe Valley, Geelong and Melbourne’s north.

Avoid costly and environmentally risky additional water and energy supply

Building sector efficiency improvements could save up to 100 petajoules of gas for industrial use – avoiding the need for an environmentally risky unconventional gas industry.

Failing to lock in water savings through efficiency risks future reliance on desalination, with consequent impacts on household bills and greenhouse emissions.

Ease financial pressure on households and business

An efficient home can cut energy costs by 40 percent, translating into annual savings of up to $1000 for the average Victorian household.

Improve community health and well-being

Our poor quality homes pose risks to our health, particularly for the elderly, very young and chronically ill. The January 2009 heatwave contributed to 374 deaths, while a recent study found more people die from chronic cold in Australia than in Sweden.

Create jobs

Upgrading Victoria’s housing stock to an average 5 Star standard by 2025 would support an estimated 13,000 jobs (gross) over ten years and 8500 ongoing jobs.