The global Energy Efficiency Building Retrofit Program, a project of the Clinton Climate Initiative (CCI), was launched in May at the recent C40 Large Cities Climate Summit by former US President Bill Clinton and brings together several of the world’s largest organisations and cities.

“Climate change is a global problem that requires local action,” said Mr Clinton. “The businesses, banks and cities partnering with my foundation are addressing the issue of global warming because it’s the right thing to do, but also because it’s good for their bottom line.”

Under the Clinton initiative, both the city and private building owners will benefit from a special financing arrangement that will allow them to borrow the funds to make the retrofit investments, and to pay back the loans using the first years of energy savings they will achieve. This is a tried-and-tested approach known as Energy Performance Contracting (EPC), which typically leads to energy savings of between 20 and 50 per cent. The Australian EPC industry has delivered similar successful building upgrade programs in the past, notably in Adelaide and Melbourne.

The EPC industry association has recently merged with the BCSE, and as President of both bodies, Peter Szental is well placed to sit on the Clinton Initiative’s Steering Committee and share the industry’s expertise. “The Australian EPC industry has a well-developed framework that is tailor-made to deliver on the objectives of the Clinton initiative,” Peter said. “We have already developed best practice guides to contracting and performance monitoring processes, and a scheme for accreditation of energy services companies looking to deliver the building upgrades.”

The group of 15 cities that has agreed to participate in the program and offer their municipal buildings for the first round of retrofits are Bangkok, Berlin, Chicago, Houston, Johannesburg, Karachi, London, Melbourne, Mexico City, New York, Rome, Sao Paulo, Seoul, Tokyo, and Toronto.

The EPC industry estimates that Melbourne’s involvement in the Clinton green loans scheme has the potential to save over half a million tonnes of greenhouse gas emissions, 750 million litres of water and save building owners more than $40 million per year.

The initiative was announced in partnership with four global energy services companies - Honeywell, Johnson Controls, Siemens and Trane - who have undertaken to conduct energy audits, perform building retrofits, and guarantee the energy savings of the retrofit projects. ABN AMRO, Citibank, Deutsche Bank, JPMorgan Chase, and UBS have committed to arrange $US1 billion each in finance for cities and private building owners.

Participation in the program will also be open to local banks and companies, who will be invited to contribute to the funding pool and to expand the list of green products used in retrofits. The Australian EPC industry is working with the City of Melbourne and other partners to ensure that the global program is successfully adjusted to local market conditions. This includes consideration of existing industry frameworks, and making sure that implementers are locally accredited, alongside existing Australian energy service companies such as AGL, Energex and Energy Conservation Systems.

As part of the program, cities have agreed to develop a program to make their municipal buildings more energy efficient and provide incentives for private building owners to retrofit their buildings with energy saving technologies.

BCSE Executive Director Ric Brazzale congratulated the City of Melbourne for participating in the scheme and exploiting energy efficiency, the easiest, quickest and most cost effective greenhouse measure there is.

“Around the world, expert analysis, including the International Energy Agency and the UK Stern Review, demonstrates that improved energy efficiency offers large potential for greenhouse abatement at a positive financial return,” he said.

“Initiatives contained in the Melbourne proposal show that many investments in energy efficiency can pay themselves back within 12 months. It is not just good for the environment but obviously also very good for business.”

This is the first of many programs that CCI is organising with partner cities in the C40 Large Cities Climate Leadership Group, an association of large cities that have agreed to work together to reduce their greenhouse gas emissions.

London Mayor Ken Livingstone, who is also Chair of the C40, said: “The C40 brings together the world’s most significant cities to tackle climate change. This first program to come out of our partnership with the Clinton Climate Initiative is a considerable breakthrough. This procurement alliance will make it financially feasible for cities to radically cut emissions from buildings.”

Mr Livingstone noted that while national governments still struggle to agree on a way forward on global warming, cities, which are responsible for around three quarters of global greenhouse gas emissions, are demonstrating the leadership and decisive action necessary to prevent catastrophic climate change.

President Clinton launched the CCI in August 2006 with the mission of applying the Foundation’s business-oriented approach to the fight against climate change in practical, measurable, and significant ways. In its first phase, CCI is working with the C40 Large Cities Climate Leadership Group to accelerate efforts to reduce greenhouse gas emissions.