GLOBE-Net, June 5, 2012 - World attention has been drawn to London England this week with media coverage of Queen Elizabeth's Diamond Jubilee and the run up to the London 2012 Olympic Games due to open in less than 60 days.  

And while the Olympic organizers have promised to deliver the most sustainable Olympics ever, the host city of London is also working to become one of the greenest cities in the world. 

London's Mayor, Boris Johnson has committed the city to targets that could reduce the capital's CO2 emissions and energy consumption by 60% by 2025. 

A key aspect of the city's CO2 emissions reduction plan is the Greater London Authority's building retrofitting program, known as RE:FIT, which could realize a reduction of 100,000 tonnes of CO2 emissions by 2015. 

The RE:FIT program helps public organizations to equip their buildings with energy-saving technologies that did not exist when the buildings were first built, including new building management systems, combined heat and power, photovoltaic solar panels, low-energy lighting and new, more energy efficient boilers. 

A significant part of London's CO2 is emitted from public sector buildings. Thus there is a need to make those buildings more efficient. Current estimates are that up to 80% of buildings currently occupied by councils, health, and education authorities will still be in use in 2050. 

London's RE:FIT program is part of a global program led by the Clinton Climate Initiative bringing together the world's leading cities (C40) to tackle climate change. London is the first of the C40 cities to launch such a program.

A pilot exercise involved retrofitting 42 buildings used by Transport for London, the Metropolitan Police, and the London Fire Brigade, and further work is nearing completion on another 44 buildings in some of London's boroughs, universities, hospitals, and cultural organizations. 

Plans are underway to retrofit a further 297 buildings over the next year, with a target for a total of 600 public buildings to be given an energy-efficiency makeover as part of the programme by 2015. 

These will include town halls, libraries, and museums, which in total could lead to estimated savings of up to £6 million ($US 9 million) on energy bills each year with reductions of 36,000 tonnes of carbon dioxide emissions - the equivalent of taking around 60,000 vehicles off London's roads. 

The potential energy and cost savings of retrofitting are substantial: for the organizations that took part in the pilot, the installation of the new technologies helped them identify savings of over 7,000 tonnes of CO2 per annum, and annual cost savings of more than £1 million (US$ 1.5 million). 

The RE:FIT scheme also involves very low financial risks. Approved energy service companies, which provide the retrofitting work, guarantee that the alterations to these buildings will deliver the agreed reduction in energy over an agreed payback period. This helps transfer the risk from the public into the private sector. 

It also gives participants access to specialist skills and support. Financed via £2.67 million ($US 4.11 million)  from the European Investment Bank's ELENA (European Local Energy Assistance) fund, a development unit established to oversee the rapid implementation of the programme - and act as its public face. 

This unit provides a single point of expertise and helps participating authorities understand how the scheme can be applied to their assets and provides support during the preparation of tenders and the procurement of suppliers that will help to save them energy. 

It oversees all projects being undertaken through RE:FIT and reports back on their overall impact and successes. This unit also is responsible for managing the performance of the energy service companies. 

The Payoff from Building Retrofits 

Research undertaken recently by GLOBE Advisors as part of an assessment of the employment and investment potential of the clean economy confirms the importance of building retrofits as an important vehicle for reducing emissions  while at the same time generating significant positive economic and employment benefits.  

A West Coast Clean Economy report released in March 2012 notes that governments at all levels have the potential to stimulate the industry and create jobs by encouraging retrofits of existing public and private buildings where appropriate, including personal dwellings, small businesses, and public institutions such as schools and hospitals. 

Since approximately 98.5% of the building stock in North America is found in existing buildings, the opportunities for retrofits are significant. And because the work must be performed locally, the job benefits stay in the communities where investments in projects take place. 

In the institutional and commercial building space, "whole building" retrofits are presenting some of the greatest benefits in terms of cutting costs for building owners and managers while improving energy efficiency and reducing greenhouse gas emissions. 

In many cases, optimizing the performance of buildings presents a better payback or return on investment (ROI) than other investment alternatives available in today's uncertain marketplace. 

In addition to energy efficiency savings, additional cost savings can be realized and revenue streams can be identified through a "whole building" approach that looks to optimize the productivity of a building's existing square footage - by bundling projects, opening up extra leasable floor space from downsizing technologies such as chillers and HVAC units, and by adding solar photovoltaic arrays to rooftops as a few examples. 

Examples drawn from programs in California, Oregon, Washington state and the province of British Columbia illustrate how some of the key barriers to building retrofits are being overcome by providing one-stop information on and access to rebates, financing, certified contractors, and energy ratings such as are being provided under the City of London's RE:FIT program. 

Check here for more information on the GLOBE Advisors research that was published in the West Coast Clean Economy Report.

^{Some data extracted from an article by David Rees for the local government network of Guardian Professional appearing in EurActiv}