Policy Reforms and Market Transformation of the Energy Efficient Buildings Sector of the I.R. Iran



Iran is among 10 largest emitter of Carbon Dioxide (CO2) and the residential and commercial building sectors are playing a main role in this result.

Increasing energy efficiency in buildings, therefore represents an important contribution to reducing emissions and climate change mitigation.

The objective of this project is to support transformation of the energy efficiency of heating systems in buildings in Iran thereby reducing national Greenhouse Gas (GHG) emissions as well as heating bills for residents.

It is envisaged that this will be achieved by:

  • Reviewing the legislative, policy and regulatory frameworks that impact building efficiency in Iran; revisiting the building code and products standards and labels and developing a supportive cross-sectoral energy efficiency strategy;
  • Piloting installations of energy efficient and renewable energy measures in existing buildings; and
  • Transforming the market by training manufacturers and building professionals to produce and install energy efficient heating systems; developing a stakeholder awareness-raising campaign and developing proposals for financing mechanisms for households.

The goal of the project is 153 Million tons cumulative CO2 emission reduction and the two objectives is firstly 25% reduction of SECth in existing building and secondly 60% reduction of SECth in new building.

Key achievements to date:

The agreement to initiate and implement this project was signed in August 2016. Since then the project progress and achievements are as follow:

EEEB Project the first outcome:

  • New revision of building code 19th (ECBC) drafted in cooperation with Road, Housing and Urban Development Research Centre (BHRC) and is supposed to be published by September 2019.
  • Implementing mechanism for enforcement of energy building code 19 will be finalized in three months (BHRC).
  • New version of national standards on energy consumption criteria (INSO 14253 & 14254) will be finalized in four months (with INSO, IFCO, SATBA & BHRC).
  • First part of reference laboratory equipment received – November 2018 to June 2019.
  • Establishment of national Energy Monitoring Information System (EMIS) tool is contracted will be out in eight months.
  • Legal and regulatory consultation for preparing of implementing instructions of EEE Market by-law has been tendered and will be started in a month.

EEEB Project the second outcome:

  • Conduct energy audit in 10 nominated buildings by February 2019.
  • Draft Measurement and Verification (M&V) guidelines, ESCO business models and Energy Performance Contracts (EPC) drafted in cooperation with Iranian ESCO association.
  • Nominate 41 public buildings out of 150 for 1st  batch of pilot projects.
  • Conduct qualitative evaluation and scoring of ESCOs.
  • Workshop of international experiences on EE and ESCO business model.
  • Issue contract for revising INSO 14254 national standard.
  • Nominate MC contractor for pilot projects.
  • Technical evaluation of proposals for 1st batch of pilot project is on-going and the winners will be contracted during July 2019.

EEEB Project the third outcome:

  • EE market situational analysis study.
  • Comprehensive stakeholder analysis and mapping.
  • A conceptual model for EEE market drafted and presenting to key stakeholders.
  • Study on multiple benefit of EEEB.
  • EEEB campaign in schools with participation of 120 schools.
  • Five women training (400 women) on climate change and energy efficiency in building (EEB).
  • Media training for 16 journalists on EEEB aspects held that leads to further coverage of project news.
  • Overall communication and public awareness plan.
  • Provision of comprehensive training program is on-going and will be finalized in July.
  • Nomination of training Centre is on-going.