C ITY OF Z ÜRICH, SWITZERLAND

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1 90 C ITY OF Z ÜRICH, SWITZERLAND OCTOBER 2005 Energy and Resource Efficiency in Building Construction and Management Designing and constructing buildings for sustainability can have a decisive impact on Case Study the environment, the economy and the building s users. Because buildings are expensive, long-term projects, it is crucial to address issues such as energy and resource efficiency in order to achieve long-term sustainability goals. PROGRAM NAME 7 MILE STEPS FOR ENERGY AND RESOURCE EFFICIENT BUILDING CONSTRUCTION AND MANAGEMENT The 7 Mile Steps Program uses Zurich s energy and environmental policy and technical expertise and investment to increase resource efficiency and improve indoor environmental quality in buildings while promoting long-term sustainable development practices. ABSTRACT The City of Zürich, Switzerland, has a longstanding history in energy efficiency. In 1997, the city council decided to introduce an Environmental Management System based on ISO Under the resulting management system a list of sustainable development goals for city-owned new and refurbished buildings was drawn up and approved in The goals became known as the 7 Mile Steps for Energy and Resource Efficient Building Construction and Management. The 7 Mile Steps Program incorporates several energy standards used in Switzerland and across Europe. For example, all new and some refurbished buildings must meet MINERGIE building standards; in the end the buildings will consume half of the energy used by conventional buildings in Switzerland. As well, light standards must exceed national Swiss standards and household appliances must be highly efficient and exceed European standards. The 7 Mile Steps Program also requires ZÜRICH Europe CITY PROFILE Population 367,000 (city proper) Land Area 90 km 2 Municipal Budget US$5.5 billion (7 billion Swiss francs)

2 The City of Zürich currently owns over 4000 municipal buildings. By the end of 2005, 80 percent of new buildings and 30 percent or refurbished buildings will meet the MINERGIE standard. the use of renewable energy and recyclable and sustainable building construction materials. By the end of 2005, 80% of new buildings and 30% of refurbished buildings will meet the MINERGIE standard. Energy efficient lighting design is already saving 750,000 kwh or US$120,000 per year. With better insulation and ventilation, new benefits have been created, such as improved indoor air quality and better protection from noise pollution. Shares for renewable energy and waste heat recovery have increased rapidly in new and refurbished building projects within the city. Some projects include waste heat recovery and solar preheating of water for institutional and residential uses. Further measures are planned within the framework of the 7 Miles Step Program. Pilot and demonstration projects have made it possible to gain experience with technologies and methods that will become state-of-the-art within the next 10 years. In May 2005, the City of Zürich, was awarded the European Energy Award GOLD label, the award s highest standing for energy efficiency and renewable energy use. IMPORTANCE OF THE ISSUE Designing and constructing buildings for sustainability can have a decisive impact on the environment, the economy and the building s users (improved indoor environmental quality). Because buildings are expensive, long-term projects, it is crucial to address issues such as energy and resource efficiency in order to achieve long-term sustainability goals. CASE Background Energy and ecological aspects of city development and building management have a long tradition in Zürich. In 1981, the City of Zürich started a program for improving energy efficiency in existing buildings. The program successfully concluded in In 1997, Zürich city council decided to introduce an Environmental Management System (EMS) according to ISO in various departments in the administration. The Building Department s Office for Building Construction decided to combine this task with the preparation of a Quality Management System according to ISO In 1999, the Office for Building Construction was the first agency in the city administration to receive ISO certification for a management system. As a result, implementing energy and environmental 2 ICLEI LOCAL G OVERNMENTS FOR S USTAINABILITY CASE S TUDY Nº 90 ZÜRICH

3 policy is no longer based only on city council decisions, but also on a recognized international standard. Initially, the focus of the EMS was on the environmental impacts of office operations, such as energy and paper use. In 2001, for the first time, indirect environmental goals were drawn up for construction projects the core function of the Office for Building Construction. At the same time a similar management system was introduced in the newly founded Office for Building Management, which controls the real estate used for city activities (administration, schools, public health services, etc.). Standards to achieve the goals of both systems were consolidated into the Building Department s 7 Mile Steps Program for Energy and Resource Efficient Building Construction, to be in effect until Case Description The 7 Mile Steps Program is based on the Swiss MINERGIE building standard created in MINERGIE guarantees a high level of living and working quality as well as energy efficiency in new and refurbished buildings with respect to the building envelope (wall, roof, foundation), the specific energy demand and the ventilation system. Separate specifications for lighting, commercial refrigerator rooms, warm water, indoor swimming pools and household appliances are based on standards set by the Swiss Engineers and Architects Association (Standard SIA 380/1), standards which also serve as basis for the Swiss national energy regulations. The additional investment for a MINERGIE building project compared with a conventional design is not permitted to exceed 10%. In Switzerland, MINERGIE certification has been very successful in the market, with more than 4,000 buildings certified to date. It is more widely used with new buildings than with refurbishment. The standards in the 7 Mile Steps Program, which apply to both building construction and management, are: 1. New buildings must follow the MINERGIE standard (offices, schools: specific energy demand for heating and warm water less than 40 kwh/m 2 ). Exceptions apply for special cases if a reason is given % of refurbished buildings must meet the MINERGIE standard (offices, schools: specific energy demand for heating and warm water less than 70 kwh/m 2 ). 3. New buildings and 50% of refurbished buildings must meet the MINERGIE lighting standard. Office and household appliances must be procured according to Topten, a website created by a local agency that offers consumer advice on the most energy efficient appliances. 2 All appliances must meet the highest energy efficient category, class A, of the European Energy Label. 4. Renewable energy use must meet at least 25% of heating requirements in new buildings. Renewable energy must be considered for all buildings. 5. Eco-friendly building construction and Left: The Zürich Administrative Center was refurbished according to MINERGIE standards. The refurbishment also included highly efficient floor lamps and ecofriendly building materials. Right: A new local elementary school is built using eco-friendly building materials. The school also meets MINERGIE standards. 3 ICLEI LOCAL G OVERNMENTS FOR S USTAINABILITY CASE S TUDY Nº 90 ZÜRICH

4 materials must have no health risks and must meet the Zürich Building Department s specifications on Building and Ecology. 3 Indoor environmental pollution should be well below official limits or guidelines. 6. Environmental sustainability must be a decision-making criterion for architectural competitions and preliminary studies. 7. Building management must be performed according to environmental criteria that include energy performance, green procurement, environmentally-friendly maintenance, cleaning and disposal, and sustainable portfolio management. Application to Municipal Real Estate The 7 Mile Steps Program applies to all cityowned buildings. The City of Zürich owns about 4,000 buildings with a value of about US$8 billion (10 billion Swiss francs), and manages approximately 10,000 apartments. In recent years, around 60% of investments were made in new construction and only 40% in refurbishing existing buildings. Especially in the 1990s, maintenance on older buildings was neglected and therefore it will become a priority for the years to come. The 7 Mile Steps Program also applies to projects that obtain support from the city, such as foundations, freehold properties and cooperatives. Moreover, the program has a strong influence on the private building sector due to its outstanding results. 7 Miles Steps and Master Energy Plan The 7 Mile Steps Program defines the energy standard for buildings in accordance to the municipal energy policy. In 2002, the city council adopted a Master Energy Plan that calls for: > reducing fossil fuel (oil and gas) consumption in municipal buildings by 15% by 2010 (compared with 2000 levels), > reducing carbon dioxide (CO 2 ) emissions from fossil fuel used in municipal heating and vehicles by 15% by 2010 (compared with 1990 levels), > stabilizing the consumption of electrical power in municipal buildings by 2010 to the level used in In addition to promoting efficient and renewable energy use, the Master Energy Plan requires municipal buildings to be exemplary beyond government regulations. As with the MINERGIE standard, this also applies to buildings that receive support from the city. Results The reporting for the 7 Mile Steps Program takes into account all construction projects worth over US$4 million (5 million Swiss francs). MINERGIE Standard By the end of 2005, approximately 80% (120,000 m 2 ) of new buildings and 30% (80,000 m 2 ) of refurbished buildings will meet MINERGIE standards. The profitability of the building designs is checked against city council guidelines, which take into account external costs for environmental hazards. Increased investment in energy efficient building envelopes and ventilation and heating systems can be partly amortized by lower operating costs. At the same time, intangible benefits are created, such as improved indoor air quality and better protection from noise pollution. It should be noted that energy efficiency renovations in older buildings may be limited by economical considerations, the need to preserve architectural heritage, etc., and thus the potential for energy savings can be diminished. Energy Efficient Lighting and Appliances By the end of 2004, energy efficient lighting meeting the Swiss Engineers and Architects Association standards was incorporated into 49 buildings with an illuminated area of 170,000 m 2. In addition, 37 new buildings and refurbishments with an area of 125,000 m 2 meet the MINERGIE lighting specifications. The reported savings in electrical power amounts to 750,000 kwh (35%) or US$120,000 (150,000 Swiss francs) per year. If projected for a useful 4 ICLEI LOCAL G OVERNMENTS FOR S USTAINABILITY CASE S TUDY Nº 90 ZÜRICH

5 exhaust gases emitted by the heating plant of a large housing complex, it will be possible to heat all new school buildings and sport facilities (23,000 m 2 energy reference area) under construction at this location. By using a heat pump with environmentally-friendly refrigerant propane, 580 MWh of waste heat per year is extracted from a sewer to heat an existing school building. During a local event held by the World Wildlife Foundation, Zürich City Councillors were recognized for their procurement policy for energy efficient appliances, one of the important goals in the City s 7 Mile Steps for Energy and Resource Efficient Building Construction and Management. period of 15 years, US$1.8 million (2.2 million Swiss francs) will be saved. The savings in energy costs were achieved without any increase in investment cost, except for some moderate expenditure for more careful design procedures. The same standards were achieved for both new buildings and refurbishments. For its outstanding achievement in the lighting sector, the City of Zürich was granted the 2004 Greenlight Award by the European Commission. Ninety-eight percent of all household appliances procured by the Building Department in 2003 met the 7 Mile Steps Program energy efficiency specifications; 41% were in fact the most efficient appliances, according to Topten. Subsidies from the local public utility company, EWZ, helps offset the higher costs for energy efficient appliances. In selecting high quality energy efficient appliances, the City of Zürich enables its tenants to lower the energy charges for their apartments. Renewable Energy Use During the last two years, the share of renewable energy (2005: 35%) and waste heat recovery (2005: 20%) used in new municipal construction projects has increased rapidly. A few examples: > Waste heat recovery By using 1,000 MWh of energy from the > Solar energy In various residential buildings and senior citizens homes, warm water is preheated using solar panels. The roof space of public buildings, preferably schools, are lent, free of charge, to private firms to install solar panels. They supply the power to the Solar Stock Exchange of EWZ. > Energy from waste wood A furnace that runs off waste wood and that is equipped with the latest clean air system has been planned for Zürich s new Letzigrund Stadium. Building Ecology & Indoor Environmental Quality In order to ensure good indoor environmental quality, care is taken in all construction projects. In the early planning stage, detailed checks are carried out on all refurbishments to determine whether there are harmful pollutants such as asbestos in the existing building or inadmissible electromagnetic fields from electrical installations, transformer stations, etc. The building materials have to meet the required ecological and toxicological standards. Material efficiency is increased by using a large share of recycled concrete. For many projects, indoor air measurements (formaldehyde, total volatile organic compounds (TVOC)) are carried out after construction has been completed. Throughout the process the construction is systematically checked against the building design to ensure that pressure to meet deadlines and costs does not have an unfavorable impact on indoor air quality. 5 ICLEI LOCAL G OVERNMENTS FOR S USTAINABILITY CASE S TUDY Nº 90 ZÜRICH

6 Environmental Sustainability in Architecture Competitions When architecture competitions are conducted, environmental and energy efficiency requirements are judged. Within the framework of a pretest, simple energy and life-cycle analysis are carried out for the designs on the short list. The jury takes this evaluation into account when deciding the winning entry. As a benefit, the pretest information can be used to improve the winning project. Ecological Measures in Offices Since the introduction of the EMS, the amount of paper used per employee has increased to 10,000 sheets per year. However, this has been counteracted by the introduction of different types of paper so that over 80% recycled paper is now used. Around 1% of the city administration s power consumption procured is from green power ( premium solar and premium water, according to the European-wide naturemade certification 4 ). Pilot and Demonstration Projects Further measures are planned within the framework of the Master Energy Plan and the 7 Mile Steps Program. Pilot and demonstration projects have made it possible to gain experience with technologies and methods that will become state-of-the-art within the next 10 years. A few examples: cost, the city conducted a competition, which had the added benefit of promoting the development of innovative products in the market place. A range of products from various manufacturers met the strict technical specifications for energy and lighting that had been developed. In the end, the city was able to obtain the lamps at a very reasonable cost, and will save US$660,000 (800,000 Swiss francs) over a period of 20 years. The other partners gained market advantages due to an innovative and competitive product. The 800 lamps purchased by the city triggered extra sales of over 5,000 floor lamps that correspond to a power saving of around 600 MWh per year. > Together with partners from other government agencies, suppliers and research institutes, tests are being carried out on recycled concrete with mixed aggregate of bricks and mortar to determine the right conditions for future practical applications. Master Energy Plan In 2000, the City of Zürich was awarded the national label Energy City for its efficient energy use and promotion of renewable energy. In 2005, it has been recertified on a higher level and has received the European Energy Award GOLD for continuing their legacy of consistent, long-term energy policy and planning. 6 > A competition for an energy concept was carried out for the refurbishment of a city hospital. The winning concept responded to the energy standard set by the 2000-Watt-Society. The target is a reduction in energy use per person in Switzerland from the current amount of 6000 W to 2000 W (with 500 W from nonrenewable sources) by > A project to develop an office building floor lamp that would meet the MINERGIE standard was carried out by the Building Department with the support of the municipal energy saving fund and the local utility (EWZ). Instead of developing its own lamp at a high LESSONS LEARNED The 7 Mile Steps Program has been successful in determining project-specific goals, particularly for refurbishments where the amount of renovation and energy standards to be achieved must be decided at an early stage of the project. In most cases, conflicts between various goals and standards (fire safety, architectural heritage, energy) have to be resolved. It is necessary to ensure that the construction projects meet energy efficiency standards throughout the process, so regular checks are vital. In Zürich these checks are supported by the city s management system (ISO 9001, ISO 6 ICLEI LOCAL G O VERNMENTS FOR S UST AINABILITY CASE S TUDY Nº 90 ZÜRICH

7 14001) and the annual review of Master Energy Plan measures. Project reviews are also important in optimizing building operations. For example, a poll of building operators and users has shown that in many cases the MIN- ERGIE standards are implemented by the use of highly technical solutions that make operation difficult, such as complex lighting control systems. Action is needed to reach the MIN- ERGIE standard with low-tech solutions. Making the Master Energy Plan compatible with the EMS (ISO 14001) has created considerable synergies. Moreover, decentralized decision making is promoted under the common requirements of the city energy policy an important aspect when approximately 20 city administration departments are involved in defining the plan measures. The 7 Mile Steps Program employs energy and environmental standards as well as planning instruments, such as recommendations for using certain types of ecological materials, etc., which are widely recognized in the Swiss building market. The City of Zürich s preferred strategy is to contribute to the development of such planning instruments rather than creating its own standards. KEY REPLICATION ASPECTS With the 7 Mile Steps program, the City of Zürich is able to address the sustainability of its own buildings and encourage change in the wider context of Switzerland s building market. The 7 Mile Steps Program is successful because it has the full support of the management, the head of the Building Department and the entire city council. The program is in principle suitable for other cities and towns, however it must be adapted to the size of the community. The MINERGIE standard is a useful aid to building owners when they are determining and enforcing the building standards in design and construction. Conducting and communicating a cost-benefit analysis of MINERGIE buildings can gain support for energy efficient construction among politicians and the public. The City of Zürich supports the development and application of the eco-bau building label that ensures the use of healthy and ecological building methods and acts as a supplement to the MINERGIE standard. 7 The intention is that both labels will amalgamate to form the new MINERGIE-ECO label for buildings in Various projects have demonstrated that a public-private partnership with the participation of companies, suppliers, scientists and building owners can lead to the development and practical testing of sustainable products for the building market. This leads to better results than the development of one-off products. It is critical to promote the successes of energy efficiency projects to political authorities, the public and the business community. Only then can the public become fully aware of the benefits of sustainable building and the contribution it can make to a higher quality of life in the city. Staff Approximately 110 employees staff the Office for Building Construction. As part of the Office for Building Construction, the Center for Sustainable Building designated 200% of a fulltime position to implement the 7 Mile Steps Program and support the 70 project managers. Staff is responsible for environmental management, consulting on construction projects and architecture competitions, managing studies and pilot projects, participating in expert groups, and public relations. As part of the Office for Building Construction, the Center for Energy and Building Engineering provides 250% of a full-time position. In addition, a network of external specialists contributes to this program. Budget and Financing The yearly investment total of the Office for Building Construction is US$330 million dollars (400 million Swiss francs, approximately 1% of Switzerland s total building volume). The implementation of the 7 Mile Steps 7 ICLEI LOCAL G O VERNMENTS FOR S UST AINABILITY CASE S TUDY Nº 90 ZÜRICH

8 Program requires 0 to 10% higher investment costs for new buildings and refurbishments. In the long-term, these extra costs can be partially recuperated by lower operating costs. The annual budget for the Centers for Sustainable Building and Energy and Building Engineering for studies, research and pilot projects is US$600,000 (750,000 Swiss francs). for the Master Energy Plan: Bruno Bébié Energy Deputy for the City of Zürich Tel: / Fax: / bruno.bebie@dib.stzh.ch Website: KEY CONTACTS for the 7 Mile Steps Program: Dr. Heinrich Gugerli Head, Center for Sustainable Building Office for Building Construction City of Zürich Tel: / Fax: / heinrich.gugerli@hbd.stzh.ch Website: or Case References 1. MINERGIE-standard: (German and French) 2. Topten for energy efficient appliances: (German) 3. Building and Ecology specifications and the Center for Sustainable Construction: (German) 4. naturemade certification: Watt-Society: 6. European Energy Award: 7. eco-bau building label for sustainability and public building: (German and French) Other References > City of Zurich Building Department: (German) > City of Zurich energy policy and Master Energy Plan: (German) Acknowledgements Cornelia Sidler, writer; Jennifer Lee, editing and production. Date Written October 2005 ICLEI Local Governments for Sustainability is an international association of local governments implementing sustainable development. ICLEI s mission is to build and serve a worldwide movement of local governments to achieve tangible improvements in global sustainability with special focus on environmental conditions through cumulative local actions. 16th Floor, West Tower, City Hall, Toronto, Ontario, Canada M5H 2N2 Tel: / Fax: / iclei@iclei.org 2005 by ICLEI-Local Governments for Sustainability. All rights reserved. 8 ICLEI LOCAL G O VERNMENTS FOR S UST AINABILITY CASE S TUDY Nº 90 ZÜRICH