the presentation was given at the 2009 Green Building and Energy Efficiency International Conference in August in Shanghai, China. The conference was organized by McGraw-Hill and sponsored by U.S. DOE, USGBC, Shanghai Green Building Council, etc.

1. Credit: Clifford Krauss
Building Solutions to Climate Change à@ ^
Kevin Mo, Ph.D.
Senior Sustainable Building Specialist
Natural Resources Defense Council
2009 Green Building and Energy Efficiency Internationa 2009 ,
2009 8 19
Conference, Shanghai, CHINA
August 19, 2009

2. How far away is climate change?
• Global warming: When you feel it, it’s already too late.
®
2

3. 2 degrees 450 ppm 2+450ppm
• GHG concentration can’t exceed the equivalent of 450 ppm of CO2 CO2 ++-450ppm
• CO2 levels have already increased 1/3 from 280 ppm to 380 ppm CO2 1/3
• 550 ppm by 2040 if BAU CO2 :2040 - 550ppm
3
Source: Stern Review, 2006

4. Climate change impact on China -
4
Source: Jinyun Li

5. Do it now +
5
Source: Design to Win, California Environmental Associates

6. ACES # +
• 6 26 # ) 219 212 -“# + ”
ACES was passed by House on June 26, 219-212
• # - “¦/ + ”)
First ever U.S. GHG cap and trade program
• Ø
Clean energy provisions
•
Energy efficiency standards
• +
CCS deployment program
• Ø
Other provisions
6

7. Cap and trade provisions ¦/ + Ø
•
reduce GHG emissions by pricing carbon
• ¦/)
set a limit on total emissions
• ¦/ . 9 1- 1:
distribute allowances equal to the limit. 1 allowance = 1 ton of CO2
equivalent
• )
allow trading of allowances
• , . + ,
companies that reduce more emissions can sell extra allowance to
other companies
• + ,
Penalize companies that emit without allowances
7

8. Illustration of carbon emission by 2050 2012 2050 ­
8
Source: Environment Northeast

9. Other provisions Ø
• ˜ W 50%
stricter building codes: 50 percent energy reduction for residential
and commerical buildings
• b
upgrade standards for appliances
• ¦/ ) +
cap and trade program funds state renewable energy and energy
efficiency programs
• - 2020+
,
ý
Border Tax Adjustment: If implemented, would require U.S.
importers of carbon-intensive products hold allowances to prevent
“carbon leakage”
9

10. What’s next +
• ) :9 4 R
The Senate may submit its own draft in September
• -O- , X6))
Need to go through six committee
• 60 + 51 -
Need 60 votes to end filibuster, and then need 51 votes to pass the
bill
• ) - ) - : U
If passed in the Senate, will reconcile the house and senate bills,
and vote again
• ¦ #» ™ .
President to sign
• - a) ) 67 -»
If a Copenhagen treaty is reached, require 67 votes to be ratified by
the Senate
10

11. Carbon affects balance sheet B
• .
carbon allowances become value assets
• . L
carbon allowances become tradable
• +
carbon market
• . , . . B
saved carbon allowances become assets, extra carbon emissions
become liabilities
• , B /˜
balance sheet needs to be restructured under carbon cap and trade
• , : ° )
, +
many corporations are evaluating potential carbon risks and
opportunities by trading at voluntary carbon exchanges
11

12. Global 500 on Carbon Disclosure 500 ,
Carbon Disclosure: Global 500
12
Source: Carbon Disclosure Project Report 2008

13. China 100 on carbon disclosure - 100+ O
Carbon Disclosure:
• China 100
• only 5 fill up survey
13
Source: Carbon Disclosure Project Report 2008

14. Building sector key to climate change ˜ /
The building sector has the greatest potential of any sector for reducing GHG…We can’t meet
the climate change commitment without addressing building energy performance
˜ 4 , 9 + ˜ -
The potential exists in both developing and developed countries, as well as in economies in
transition ˜ :- - :
(IPCC 4th assessment report) 14
Source: The Kyoto Protocol, the CDM and the buildings and construction sector, UNEP/SBCI Report

15. mitigation scenario in 2030 2030
80% of the needed mitigation, 25 Gt, can be achieved with existing technologies
980% CO2 / 250 : ˜ 40 : - ˜
)% 910 :
15
Source: Design to Win, California Environmental Associates

16. Building sector most economic ˜ {
16

17. Potential of China’s building sector - ˜
- ˜ ˜ ˜
Avoiding Filling
Shutting
building 180,000
down
550 500 MW Tiananmen
current
coal-fired Squares
world steel
power with
production5
plants rainforest3,4
Turning
Building
off all the
Efficient 370,000
lights in
buildings2 wind
America for
turbines
12 months
Removing
Building 20 Halting all
all cars
Three air traffic
from the UK,
Gorges globally for
Spain and
Dams five years4
Italy
1. Based on 2015 energy use and achieving energy savings of current best-in-class buildings in China; operating efficiencies only; excludes residential appliance usage 2. Equivalent to 1,950 Bn
kWh or 2.0 Bn tonnes of CO2 3. Or area of Ireland; or saving all Amazon rainforest cut from 2001-2005 4. Based on CO2 emissions saved 5. Or 30x Baosteel Group's capacity for 1 year
Source: BCG analysis; China Energy Ministry; IEA; US DOT; US DOE; EPA; IMF; WWF; CIA World Factbook; literature search
17
Source: From Gray to Green, BCG/NRDC joint report to be released in Sept 2009

18. Potential of China’s building sector - ˜
5% ˜ 65% ˜ ˜
Avoiding Filling Shutting
building 50 15,000 down
500 MW Tiananmen current
coal-fired Squares world steel
power with production
plants rainforest3 for 5 weeks4
Turning
off all the Building
Efficient
lights in 30,000 wind
buildings2
America for turbines5
1 month
Removing
all cars Building Halting all
from two Three air traffic
Sweden, Gorges globally for
Norway and Dams 4 months6
Denmark
1. Assumes by 2015: 5% compliance for existing buildings and 60% compliance for new buildings; includes operating efficiencies only; excludes residential appliance usage 2. Equivalent to 170
Bn kWh or 170 Mn tonnes of CO2 3. Or saving 50% of the Amazon rainforest cut in 2006; based on CO2 contained in representative area of rainforest 4. Or ~2.5x Baosteel Group's capacity for
one year 5. Based on new 2MW capacity wind turbines 6. Based on amount of CO2 emitted from air travel
Source: BCG analysis; China Energy Ministry; IEA; US DOT; US DOE; EPA; IMF; WWF; CIA World Factbook; literature search 18
Source: From Gray to Green, BCG/NRDC joint report to be released in Sept 2009

19. China’s buildings appliances - ˜
19

20. US-China MOU on building efficiency -#˜ %
• - ˜) +# 20097 )˜ %
MOHURD and U.S. DOE signed an MOU on building efficiency in July 2009
• X ˜ ¿
)% + ˜
exchange on building efficiency technologies, including HVAC, insulation, lighting,
cold storage, geothermal heat pump, and PV and solar thermal integration
• ) ˜ ˜ :-
demonstration projects on green buildings, building efficiency and renewable energy
technologies
• # - ˜) ) ))
: +
U.S. to support China’s eco-cities initiatives that integrates sustainable design,
renewable energy and high efficient transportation system
• -# : z + :
U.S. and China to cooperate on eco-cities standards and guidelines
20

21. Policy recommendations for retrofit ˜
• , / ™ ¡ ˜
) +)/
encourage utilities reform to support demand side management and accelerate
transformation to energy use-based pricing and metering
• 9 ˜ ˜ ,. )˜ ˜
)
Set energy performance goals and energy use management standards for large
buildings and building owners
• ˜
Integrate existing building retrofit demand and utilize international (carbon) finance
opportunities
• ˜) 9 ˜ ˜ /
Capacity building to reduce retrofit costs and accelerate adoption of optimum retrofit
technologies
• ˜
Use market-based mechanism to provide low-cost investment and incentives to retrofit
21

22. Execution is an issue W 8 9
• ` / ˜ /
Heating energy in cold climate zone alone accounts for 40 percent of China’s total
building energy use
• ˜ 20088 1 ¦ #
Civil Building Energy Efficiency Executive Order, signed by Premier Wen Jiabao on
August 1, 2008
– 18 … 9˜ )/ + )/
Article 18:…residential buildings should meet sub-metering requirements
• ( ) 20097 O ­
Beijing Municipal Heat Supply Regulation (Draft for public review), July 2009
– 23 / . 11 15 3 15 …
Article 23:…Heat season starts on Nov 15 and ends on March 15
– 31 : 5 1 10 31 )
9 + -/ /
Article 31:…By Oct 31, consumers should pay off next heating season’s heating
bill
• +
still pay by floor area, not by actual energy consumption 22

23. centerpiece of energy efficiency ˜
• RESNET # 9,
) )
RESNET: well established and
recognized energy rating program for
residential buildings
• # # / 9 LEED9
# 16-Π) 9
ENERGY STAR, USGBC, 16 states
use it to set minimum requirements
• # :.
Accepted by IRS and DOE as a basis
for tax credits for home energy
efficiency
• + À9 L ˜
)
In discussion with EU, Canada and
Japan on harmonize building energy
rating and labels
23

24. U.S.DOE Builders Challenge #
24

25. Energy labeling to remove barriers )
• œ ˜
Enforce building energy code
– ˜ X+ % , )
Building code officials do not have expertise to conduct energy performance
analysis
• ˜ ©
Provide information on building energy performance
– : º º :R
Allow consumers make informed decisions in purchasing or renting
– Ç ˜
Allow government to provide financial incentives for EE building
• )
Simple messages easy to understand
• .
Consumer oriented
– ˜ ):. ˜
EU requires a building label for any existing building is ready when sell or rent
25

26. Shanghai existing building retrofit label + 9 )
26

27. National energy labeling guideline )
27

28. Retrofit of Empire State Building  9
• 1931˜
built in 1931
• 102 , 381
102 floors, roof height: 381 meters
• 242,000
242,000 square meters
• 20094 6 )
Announced a retrofit plan on April
6, 2009
• 2000 # ) .5
#
20 million for energy retrofit on top
of 500 million for rennovation
• 38%, 15 11 5 :
save energy by 38% and cut CO2
emissions by 115,000 tons in 15
yrs
28

29. Planning and scheduling process ˜
• + • ))
Inventory and planning Design documentation
– + –
baseline energy performance Tenant energy management
analysis and feasible future report
targets – - -
– + )/
integrate goals within the current Electric sub-metering for each
renovation budget tenant to monitor via computer
• )) – / ˜
Design Development Simulation modeling and analysis
– – ¾
develop energy efficiency Financial modeling of synergistic
measures model measures
– : •
online recommendations Final documentation
– – ¦
consolidate a manageable / LEED ¾
number of potential solutions
– ¾ ' Ç
Development of project tools Integrated sustainability master
plan report
29

30. Prioritize order
• . 6514 - 6500-/ b ; /
First address reducing energy needs by redesigning the building envelope
6514 windows, insulation behind 6500 radiators, daylighting, monitoring
lighting etc.
• )% - / b
Address the supply energy needs by retrofitting the current chiller plant and
installing two floor-mounted VAV handlers per floor
• -.
Energy use will be controlled by three measures
– : í + .
Tenant energy management: access to online energy and benchmark
numbers as well as sustainability tips and updates
– ®b /
CO2 sensors for control of outside air introduction to chiller water air
handling and DX Air handling units
– ¾ »
Balance of direct digital controls
30

31. Retrofit options
• @ - a… - : b
/ + )% T
• About half the reduction in energy use will be achieved in the first
two years of the project… (by) retrofitting the double hung operable
windows, insulating behind radiators and rebuilding chillers in the
cooling plant in the basement. ” – Paul Rode, Project Executive
31

32. Retrofit of Willis Tower 9
• # T
The highest tower in USA, former name is
Sears Tower
• ˜ 1973
Built in 1973
• 108 442
108 floors, 442 meters
• 446,000
446,000 square meters
• 20096 24 3.5 # ) , ¿
- . - ˜
$350 million retrofit announced on June 24,
2009, including adjacent net zero boutique
building
• ) 80% /
reduce electricity use by 80 percent over five
years
32

33. Implementation plan
• 2 – 104 16
40%
Planning phases
Upgrade 104 elevators and 16
–
escalators to achieve 40 percent
Feasibility study reduction in energy consumption
– – c P
Sustainable goals / 40% /
– Save up to 40 percent water by
Energy benchmarking upgrading restroom fixtures,
– condensation recovery system and
water efficient landscape
Phasing of implementation
– -
• )
Initiatives harvest daylight, and lighting control
– 1 6 - that monitors amounts of incoming
Replacing 16,000 windows sunlight
– / – 5 
New gas boilers that use fuel cell Wind turbine, solar panel, green roof
technologies
33

34. END
• Thank you
• Contact
' b
Kevin Mo, Ph.D.
˜
Senior Sustainable Building Specialist
# X6
Natural Resources Defense Council
. kmo@nrdc.org
b (blog) http://switchboard.nrdc.org/blogs/kmo
» 134.888.67211
34