Mainstreaming Building Energy Efficiency Codes in Developing Countries
149
Box A4.1. Climate Change and Sustainable Energy Use Policy in Mexico In December 2008, Mexico announced a long-term national goal to reduce greenhouse gas emissions to 50 percent below 2000 levels by 2050. In August 2009, a comprehensive strategy 7 (Programa Especial de Cambio Climático—PECC) was adopted by decree to reduce energy use and emissions in order to put the Mexican economy on a low-carbon development pathway. The strategic plan involves all sectors of the economy and is followed up by sectoral programs detailing initiatives to achieve emission reductions. General references are made to improving energy efficiency in various sectors. The “Sustainable Energy Program” (Programa Nacional para el Aprovechamiento Sustentable de la Energía 2009–2012—PNASE), adopted in November 2009, outlines initiatives and responsibilities for all generation and end-use sectors for improved energy efficiency and use of renewable resources. By 2030, this should result in energy savings of up to 4,000 TWh, equivalent to about three years of current final energy consumption. Measures in the building sector are among those with the lowest abatement costs. For the building sector PNASE’s objective is to reduce space conditioning energy needs by improving insulation in new construction and by promoting better practices in buildings, resulting in energy savings of about 15 percent by 2030. To achieve this, insulation should be applied for new public buildings; building codes should incorporate insulation requirements and compliance should be a condition for receiving building/occupancy permits for new commercial buildings and for new residential buildings in relevant climatic regions; broader application of “green mortgages;” a system of building energy ratings should be developed. Other building-related initiatives focus on improving the efficiency of lighting and appliances, including air-conditioning equipment. 8
Mexico City’s Climate Action Program of 2008 defines strategies and specific measures to reduce CO2 emissions between 2008 and 2012 by 7 million tons. In addition to large water conservation programs, public transportation and waste management projects, measures include tax exemptions for new and existing residential and commercial buildings that integrate energy and water conservation, and renewable energy measures. Mexico City is also considering green building legislation. It would allow developers to increase the construction potential between 140 to 210 percent on a site, provided they implement energy- and water-efficient technologies. Source: Commission for Environmental Cooperation (CEC) 2008.
Subsidies for most residential electricity consumers create substantial disincentives to invest in energy-efficient appliances and buildings. For residential customers subsidies vary by consumption level and location of the customer. Table A4.1 shows the tariff categories for the residential consumers. Consumers living in hot climates (1A to 1F), where air conditioning use is more likely, receive higher subsidies, both through lower tariffs in summer and higher consumption limits. In 2006, electricity subsidies not recovered through the utility bill amounted to more than US$10 billion, about 1 percent of Mexico’s GDP, included in the budget of the federal government.9 Electricity tariffs for commercial buildings are defined by voltage level and demand level. On average, commercial tariffs cover the costs of supply. Tariffs 2 and 3 are for low voltage (up to 200 Volts) and apply to very small buildings. There are two others for: Tarifa OM and Tarifa HM are for medium voltage customers. The tariff structure consists of fixed monthly charges for tariff 2 customers only, demand charges depending on region and tariff, and energy charges that vary with the tariff, region, season of the year, day of the week and hour of the day. The resulting average tariffs between 0.11 and 0.21 US$ per kWh in 2008 are shown in table A4.2.