Commercial, Energy Efficiency, GHG Emissions - January 19, 2016
Existing building energy efficiency becomes multibillion-dollar industry
Most new construction today is done with some degree of energy efficiency in mind. While many new buildings use state-of-the-art technology in their HVAC systems, windows and other components, upgrades to existing buildings are needed in order to make a large-scale impact on energy consumption and greenhouse gas emissions.
Regulations are helping this trend, particularly in cities such as New York and San Francisco, where building codes are increasingly being written to address energy efficiency upgrades at existing structures, Bloomberg News recently reported.
According to the U.S. Green Building Council, buildings account for 39% of carbon dioxide emissions, which exceeds transportation and industrial uses. California and New York offer a mix of rebates and tax incentives meant to help offset the costs of energy efficiency upgrades, though there is concern is that these retrofits could drive rents higher.
One of the main vendors in the building efficiency space is Johnson Controls — where it is reportedly a $14 billion business segment — and the company expects healthy medium-term growth in the sector.
"Building efficiency revenues over the mid-term are expected to increase approximately 4 to 6 percent reflecting increasing demand for Variable Refrigerant Flow (VRF) products, growth in emerging markets and an expanded HVAC product line,” Johnson Controls said in a recent company statement.