1. Planning for Future
SESSION 4 Growth
The opportunities and lessons from the
BUILDING ENERGY City of Melbourne’s implementation of
building energy policies
David Mayes Manager Strategic Planning, City of Melbourne
1. Geographic Context
2. Municipal Policy - Zero Net Emissions By 2020
3. Retrofit existing stock
4. Efficient new stock
To the IBM forum Shenyang Forum 8 March
5. Develop local combined heat and power (CHP)
City Scale Climate Action Planning in East and South-East Asia

2. Australia:
7 State Federation
7.7 million Km2
23 million people
$1.49 trillion GDP
City Scale Climate Action Planning in East and South-East Asia
1. GEOGRAPHIC CONTEXT

3. Victoria
79 local governments
238,000 km2
5.6 million people
$293 billion GSP
City Scale Climate Action Planning in East and South-East Asia
1.GEOGRAPHIC CONTEXT

4. Metropolitan Melbourne
32 local governments
8800 km2
Pop 4.2 million
City Scale Climate Action Planning in East and South-East Asia
1. GEOGRAPHIC CONTEXT

5. City of Melbourne
Capital city local government
37.7 km 2
100,000 people
$57 billion GRP
City Scale Climate Action Planning in East and South-East Asia
1. GEOGRAPHIC CONTEXT

6. Economic transition:
manufacturing to knowledge
services
Growth since late 1990’s:
Jobs - Av +16,000 pa
Residents – Av +4000 pa
Activity growth:
800,000 daily city users 2012
1,200,000 daily city users 2030
(Average 3% growth pa)
City of Melbourne
Capital city local government
37.7 km 2
100,000 people
$57 billion GRP
City Scale Climate Action Planning in East and South-East Asia
1. GEOGRAPHIC CONTEXT

7. 2. MUNICIPAL POLICY Define city’s emissions profile
Set abatement strategy
Define municipal emissions
profile
Identify lowest cost opportunities
Set abatement strategy Barriers - Understand attitudes to abatement
Identify most cost efficient Action - Regulate and facilitate
opportunities
Barriers and enablers
Action - Regulate and
facilitate
City Scale Climate Action Planning in East and South-East Asia

8. Define municipal emissions
profile
4.9 million tonnes CO 2
Estimate 2013
2. MUNICIPAL POLICY
City Scale Climate Action Planning in East and South-East Asia

9. Set the abatement strategy
2. MUNICIPAL POLICY
City Scale Climate Action Planning in East and South-East Asia

10. most cost-effective
opportunities.
2. MUNICIPAL POLICY
City Scale Climate Action Planning in East and South-East Asia

11. Barriers and enablers
Regulation:
Building Energy Efficiency
Disclosure Act 2010 (Australian
Government)
Corporate sector attitudes:
Tenants want ‘green’ buildings
understand energy efficiency
provides financial returns
compete to increase the
efficiency of portfolios.
Accept Efficiency standards &
mandatory disclosure
understand can get significant
gains for a small investment
2. MUNICIPAL POLICY
City Scale Climate Action Planning in East and South-East Asia

12. Attitudes to abatement
Non-corporate sector:
poor communication between
owners, tenants and managers (
except Owners Corporations)
Retrofitting not relevant to them
Concerns about poor ratings
Believe it will be costly
insufficient time to manage
Preoccupied with cost
management
2. MUNICIPAL POLICY
City Scale Climate Action Planning in East and South-East Asia

13. 3. RETROFIT EXISTING Benefits of retrofitting
STOCK - 1200 BUILDINGS
Obstacles to retrofitting
Best opportunities for retrofitting
The 1200 Buildings program
Regulated disclosure of energy performance
City Scale Climate Action Planning in East and South-East Asia

14. Benefits of retrofitting
Owners:
Lower running costs
Reduce risk of obsolescence
Improved reputation
Tenant retention
Increased access to capital
Reduced CO 2 emissions
State economy:
$2 billion investment
8,000 jobs
( over 10 years)
3. RETROFIT EXISTING
City Scale Climate Action Planning in East and South-East Asia

15. Best Retrofit Opportunities
Building stock segmentation
analysis Size
(1000 m2) Heritage stock
Low >20
Medium 5–20
High
1-5
Re-commission
<1
Vintage1850 1920 1930 1940 1950 1960 1970 1980 1990 2000
Arup
3. RETROFIT EXISTING
City Scale Climate Action Planning in East and South-East Asia

16. Obstacles to retrofitting
1.Access to finance
2. Split owner/tenant incentives
3. Regulatory barriers to utilising
other energy sources – CHP,
solar, wind.
4. Building systems Industry
skills and capacity
3. RETROFIT EXISTING
City Scale Climate Action Planning in East and South-East Asia

17. 1200 Buildings support
for owners:
Practical Information
Case studies
Products & services register
with Industry Capability Network
Building Upgrade Tool
Seminars and training
Link to heritage restoration
assistance
Access to low cost finance
3. RETROFIT EXISTING
City Scale Climate Action Planning in East and South-East Asia

18. Environmental Upgrade Low interest bank loans.
Finance
Municipality applies property charges to repay loans
Conditions
Only within municipality on
rateable land
Owner/tenant agreement option
works must stay with building
3. RETROFIT EXISTING
City Scale Climate Action Planning in East and South-East Asia

19. Support for tenants
(Cityswitch)
National program – Sydney,
Melbourne Adelaide, Perth and
other regional cites.
commit to achieve a 4-stars
Energy tenancy rating report
progress annually
Benchmark Energy tenancy
rating
Appoint an Energy Manager
Implement Energy Action Plan
Request Energy base building
rating
Promote energy efficiency to
staff & clients
3. RETROFIT EXISTING
City Scale Climate Action Planning in East and South-East Asia

20. 1200 Buildings Program
1. Engage and educate
2. Support with policy
3. Increase access to finance
4. Promote success
60 registered to date
160 buildings are currently
retrofitting (10% of Melbourne’s
building stock)
Some owners are not local and
don’t want to be publicly
acknowledged
3. RETROFIT EXISTING
City Scale Climate Action Planning in East and South-East Asia

21. NEW STOCK Develop building industry best practice
Industry standards converted
to minimum standards Regulate minimum standards
Planning Controls
1.Coordinated set of minimum
standards and assessment
2.Linked to industry ratings and
assessment tools.
3.Selected rating tool for type
and scale of building & ability to
meet targets.
4.industry acceptance.
5.ease of use in approvals.
6.All uses commercial, retail,
residential, educational.
4. NEW STOCK
City Scale Climate Action Planning in East and South-East Asia

22. COMBINED HEAT AND
POWER (CHP) HUBS
Understand the business
model
Regulate to enable
deployment
Remove Regulation barriers
from privatisation
City Scale Climate Action Planning in East and South-East Asia
LOCAL CHP

23. Build CHP hubs in Intensive
mixed use
Detailed Feasibility
1.Lend Lease
2.Town Hall
Preliminary Feasibility 6
9
3. Crown Casino
4. RMIT 5
8 4
5. Queen Victoria market
2
Identified Opportunities
6. Bio Medical precinct 1 3
7. Fishermans Bend 7
8. E-gate 7
9. Arden
City Scale Climate Action Planning in East and South-East Asia
LOCAL CHP

24. Planning for Future
SESSION 4 Growth
The opportunities and lessons from the
BUILDING ENERGY City of Melbourne’s implementation of
building energy policies
David Mayes Manager Strategic Planning, City of Melbourne
Thank you
To the IBM forum Shenyang Forum 8 March
City Scale Climate Action Planning in East and South-East Asia