Summary Brief El Salvador: Sustainable Construction Guide with a Focus on the Building Thermal Envelop Emissions generated by the building sector have been increasing due to the continued use of coal, oil and natural gas for heating and cooking, combined with higher levels of activity in regions where electricity remains carbon intensive. For this reason, actions have been promoted worldwide to encourage the incorporation of energy efficiency (EE) measures in buildings.1 In Latin America, the construction sector is expected to continue growing, doubling in the next decade. Although already the most urbanized region in the world, Latin America's population is also projected to increase by about one percent annually over the next decade. In this context, the construction sector presents a great opportunity to implement EE measures.2 The World Bank has a long history of supporting Central American countries in implementing EE standards and measures. The technical assistance program for El Salvador corresponds with previous work with other countries in the Region and responds to the request of the National Energy Council for support in the energy field as part of the National Energy Policy 2020-2050. The Government of El Salvador (GoES) expressed a particular interest in exploring the best way to introduce sustainable buildings with a focus on the thermal building envelope. And the Bank’s technical assistant program responded with a guide on sustainable construction of the thermal building envelope, which will serve as input for the development of a mandatory sustainable building code. The World Bank designed the sustainable building guide to provide GoES with inputs to establish the minimum standards for new buildings in the Energy Efficiency Code for buildings (referred to as CCEEES - Código de EE para edificaciones El Salvador) and major renovations of existing buildings. Among other measures, the code (or standard) focuses on improving energy conservation through passive measures in the design and construction of new buildings or major renovations of existing buildings. The focus of the guide and code is to limit heat gains from conduction and radiation through the elements of the thermal envelope (exterior walls, ceilings, exterior doors, windows, domes, and lower surfaces) to achieve considerable savings in electricity for cooling over the life of a building. This summary briefing note outlines the key findings of the World Bank Sustainable Construction Guide Report for El Salvador (2022). COUNTRY PROFILE El Salvador is one of the smallest countries with an area of 20,742 km2 and one of the most densely populated countries with 304.74 inhabitants 38.9% of the population lives in per km2, located in the 83rd percentile in the world in terms of population overcrowded conditions. density. El Salvador has a mostly young population, where the age range of 15 to 29 years represents 26.9% of the total. This is a clear indicator of a long-term need for more housing. The economy grew at a rate of The estimated GDP of El Salvador is 24 billion dollars in 2020.The economy of El Salvador ranks as the fourth in the region in terms of its 2.3% in 2019. The annual GDP Gross Domestic Product (GDP). The country has persistently recorded growth exceeded 3% only twice low levels of economic growth. Its annual GDP growth has averaged 2.3 since 2000. percent in recent years. The income per capita was $US El Salvador's per capita income in 2019 was below the average per 4,000 in 2019. capita income of the Latin American and Caribbean region. Energy balance of El Salvador El Salvador relies heavily on fossil fuels to meet its energy needs. In the energy balance of 2019, the consumption matrix by type of fuel in the residential sector was dominated by LP gas Electricity Firewood 13,869 TJ 7,112 TJ 6,655 TJ In the commercial and utilities sector, the consumption by type of fuel was dominated by Electricity Diesel LP Gas 6,238 TJ 341 TJ 100 TJ The main use of energy in public buildings is air conditioning, followed by lighting systems and computer equipment respectively. Consequently, actions taken to reduce energy consumption in the building sector of El Salvador may also significantly reduce Greenhouse Gas (GHG) emissions. Figure 1: Energy consumption in the public buildings 1 2020 Global status report for buildings and construction 2020 Buildings GSR_FULL REPORT.pdf 2 Market Assessment Panama IFC Contribution to the NDC Through its Nationally Determined Intended Contribution (NDC), El Salvador has committed to defining targets to reduce greenhouse gases (GHGs), including EE measures and the promotion of bioclimatic and vernacular architecture for different types of infrastructure. Its National Plan prioritizes the development and updating of building and urbanization regulations with a focus on adaptation and mitigation. Through other international initiatives (e.g., USAID's Regional Clean Energy Initiative), the country has developed EE standards for residential refrigerators and air conditioners. EE actions have also been implemented within the framework of the El Salvador “Ahorra Energía” Program, such as energy diagnostics in public hospitals and change of lighting in homes in the municipality of Santa Ana, among others. The carbon emission factor for electricity is not currently calculated in El Salvador. But according to the International Energy Agency, this factor is 367 g/kWh, considering losses in the network of +4%.3 THE CONSTRUCTION SECTOR IN EL SALVADOR The construction sector is one of the engines of the country's economy. In 2017 it reached a turnover close to 1.3 billion US$, representing about 5.12% of GDP. This percentage followed an upward trend during 2018 and 2019, with a constant growth of 6.69% and 8.70%, respectively.4 This growth was supported by an ambitious public investment plan that covered more than 252 projects for 2018 in different areas, with an investment close to $1.1 billion. During 2020, the construction sector registered a contraction of -15.1% due to the temporary closure of operations nationally and internationally5. In the period from January 2020 to November 2020, loans were granted for 564 million dollars, with the housing sector receiving the largest amount. However, funds toward the construction of industrial and service buildings decreased by 67.84%. CONSTRUCTION COSTS Construction costs in El Salvador can vary according to the location of the project, depending on whether it is in an urban environment, periphery, or special development zone. According to data from ICEX (Spain Export and Investment) Class B construction costs by square meter in urban areas for housing are between US$ 600 and US$ 1,500, between US$ 800 and US $1,800 for buildings and between US$ 300 and US$ 500 for industrial buildings. HOUSING According to the 2020 Household Survey, there are 1,871,468 households with an average of 3.3 people per household in El Salvador. About 8.5% of households are in extreme poverty and 17.6% are in relative poverty. The characteristics of households are illustrated in Figures 2 and 3. About 53.7 % of the population owns their homes. About 97.81% of households have electricity, 1.79% of households have air-conditioning (AC), and 45.73% have a fan. 15.7 31.07 96.4 47.81 Independent housing Room at home Room at inn Condominium Apartment Makeshift house on ranch 3 BR 2 BR 1 BR Figure 2: Percentage types of housing Figure 3: % of household room distribution in year 2020 3 EIB Methodologies for the Assessment of Project GHG Emissions and Emission Variations 4 ICEX 2018 5 https://www.bcr.gob.sv/esp/index.php?option=com_k2&view=item&id=1550:econom%C3%ADa-salvadore%C3%B1a- crecer%C3%A1-entre-5-y-6-en-2021-seg%C3%BAn-proyecciones-bcr&Itemid=168 2|P a g e A. Housing deficit and growth of the housing sector According to estimates made by UNDP in the El Salvador Human Development Report 2013, the quantitative housing deficit for 2012 was 33,131 homes, equivalent to 2.1% of the housing stock. The qualitative housing deficit amounted to 413,072 homes, equivalent to 25.9% of the housing stock. B. Building materials of houses According to the 2020 Household Survey, the construction system of concrete or mixed walls has seen a considerable increase since 1971, where this construction system only represented 14% of the country's homes, and by 2020 that percentage rose to 77%. In the apartments and condominiums, concrete or mixed system is used practically in 100% of constructions. About 52% of homes use sheet metal as a construction system for the roof. This material predominates in independent houses, whereas in apartments and condominiums concrete slab predominates with 38% and 69% respectively. OFFICE BUILDINGS Office buildings can be classified into several categories according to their age, state of conservation, finishes, amenities, facilities, location, design and compliance with EE standards. Table 1: Classification of office buildings Characteristics Price per m2 rental Class A+ ▪ Offices with the best standards in the country ▪ Emblematic buildings (architectural and emblematic design) ▪ Excellent EE and LEED (Gold or Platinum) rating Greater than US$25 Class A ▪ Generally buildings for rent Between US$13 and 25 ▪ Great location, high level of design, technology and management ▪ They are generally new buildings ▪ In this class are smart buildings Class B+ ▪ Buildings with good location, management and good finishes Between US$10 and 13 ▪ Buildings older than class A. ▪ Few amenities Class C ▪ Old buildings, have not been modernized Less than US$10 ▪ Very simple amenities ▪ Buildings of few floors ▪ They need maintenance. ENTERPRISES El Salvador's construction sector is made up of more than 1400 companies and employs more than 3.2% of total active workers. For the most part the market is made up of small and medium-sized companies, but at the same time, there are large business groups that dominate the sector and carry out important projects in El Salvador. Table 2: Classification of companies. Source: CASALCO and IXEC 2010 Spain Type of company Value of assets Small Business Up to US$250,000 Medium-sized enterprises From US$250,000 up to US$6,000,000 Large company More than US$6,000,000 Some barriers that limit the small and medium-sized enterprise segment are the following: ▪ Fragmentation, which prevents the achievement of economies of scale (mainly in the popular housing market). ▪ Low productivity, mainly due to low-skilled labor, obsolete production methodologies and precarious working conditions and under-employment.6 TERTIARY SECTOR BUILDINGS: HOTELS As of 2019, there were 578 hotels in the country. Between 2009 to 2019 the number of hotels grew by 46.7%. In 10 years, 184 hotels were built. In 2009 there were 8,298 rooms, having increased for the year 2019 to 9,518 rooms, which meant a growth of 14.7%. Relatively little for the decade. According to the Comisión Nacional de la Micro y Pequeña Empresa (CONAMYPE) data, there are 338 companies registered in the field of tourist accommodation service, of which the majority are microenterprises. 6 Ixec 2010 3|P a g e REVIEW OF THE REGULATORY FRAMEWORK The Salvadorian legal framework for the construction sector was analyzed. The analysis included laws and codes that reflect a growing concern to achieve sustainable development standards in El Salvador. The legal documents studied establishes the baseline for creating and implementing a code of good practices or effective certification systems adapted to the local environment. A. Regulation of the urban planning and construction law The regulation includes requirements for urbanization and subdivision works to receive construction authorization. This includes but is not limited to feasibility studies for sewage services, drinking water and electric power services. B. Regulation for the Structural Safety of Constructions The regulation establishes the minimum requirements for the structural safety of buildings. It seeks to ensure safety under normal operating conditions and minimize the chances of collapse in case of severe earthquakes. It applies to new constructions as well as existing constructions that are modified or renovated. It establishes the requirements for earthquake design, wind design, foundation, and slope design. It further includes technical standards. Special Standard for Housing Design and Construction: The standard applies to isolated homes, urban or rural, of one or two floors, and aims to establish the construction details of the projects that follow the simplified procedures of analysis and construction. The focus is on structural systems with load-bearing wall with masonry or concrete. Technical Standard for Quality Control of Structural Materials: This standard stablishes minimum quality requirements for structural materials. It specifies the characteristics they must have for clay masonry, concrete masonry, hollow concrete units, natural stones, wood, and steel building elements. Technical Standard for Structural Design of Masonry: This standard establishes the requirements for construction with masonry. The materials considered in the standard are solid baked clay brick, extruded mud brick and concrete block. It also sets the requirements for fluid concrete, mortar and reinforcing steel. C. Housing Law The purpose of the Housing Law is to regulate access to adequate housing and quality habitat. This law is in public consultation, it will be published in two months. Special Law on Social Interest Housing: This law establishes the characteristics and minimum requirements that housing must have for families with the lowest income in the country (up to four monthly minimum wages). Article 3 states that homes must have natural lighting, adequate ventilation and the minimum size of floor and walls that guarantee that the house is not too cold or too hot. It also requires that ceilings and walls must have good thermal behavior. D. Law on Procurement and Contracting of the Public Administration (LACAP) Its purpose is to establish the basic rules governing the planning, awarding, contracting, monitoring and closing of procurements of works, goods and services contracted by the public administration. E. Energy Efficiency Law There is an initiative to publish an Energy Efficiency Law. F. National certifications HAUS Guide: This guide applies to the design, construction, and operation of buildings. It contemplates benefits for the developer, both economic, time and training. It establishes minimum sustainability criteria for the design of buildings. To date there are 5 HAUS certified buildings and 11 more in the process of obtaining their certification. G. International Certifications LEED: To comply with LEED, a minimum energy reduction of 5% must be achieved based on the minimum requirements established for the reference building in ASHRAE 90.1-2010. Currently in El Salvador there are 36 LEED registered buildings and 5 LEED certified buildings. EDGE: This is a free software, green building standard, and international green building certification system. There are currently no EDGE certified buildings in El Salvador. Some experts have expressed a negative opinion about this certification system. 4|P a g e INTERVIEWS WITH RELEVANT STAKEHOLDERS Interviews were conducted with the aim of knowing the opinions of the key stakeholders in the construction sector regarding the implementation of a sustainable construction standard with a focus on the thermal building envelope.7 The main conclusions of the interviews were as follows: ▪ Stakeholders noted that limiting heat gains from conduction and radiation through the elements of the thermal envelope (exterior walls, ceilings, exterior doors, windows, domes, and bottom surfaces) can represent considerable savings in electricity for cooling over the life of a building. ▪ Most of the stakeholders interviewed support the implementation of a sustainable building code. Only the stakeholders who are directly involved in the construction of projects commented that they would not support the code if it involved increasing costs too much, slows down construction activities or is too rigid. ▪ The stakeholders that seem to have the greatest influence in defending the norm are the CNE, the Ministry of Housing, Fondo Nacional de Vivienda Popular (FONAVIPO) and Oficina de Planificación del Área Metropolitana de San Salvador (OPAMSS). Construction entrepreneurs could object if construction costs or project approval times increase. Professional associations could object if they perceive that it limits their professional activity. ▪ Interviewees felt that the initiative must be articulated among all the government actors involved and should be adapted to the local context rather than copied from other countries. It should also be introduced progressively with a clear transition period. ▪ There is a need for uniform sustainability criteria. ▪ Stakeholders thought that costs are likely to be a key barrier. Therefore, solutions should not increase construction costs by much. In social housing, the new regulations should not raise the cost of construction, which limits families to acquire a home. ▪ The proposed materials must be available locally, importing triples the cost. ▪ Most stakeholders shared their view that it is necessary to quantify costs and benefits using real projects and have hard numbers to be able to convince with this initiative. ▪ Incentives are important for the success of the initiative. Not only economic incentives are valued, but also saving of construction time and brand positioning. ▪ In terms of technical aspects, stakeholders felt that there is a need to differentiate strategies for buildings that use mechanical cooling and those that do not. They also noted that there is a need for solutions that prioritize efficient ceilings and windows. ▪ Stakeholders also felt that training and awareness raising was important to create demand for sustainable construction and for sustainability professionals. ▪ Since the HAUS guide will be updated, stakeholders stressed that efforts should not be duplicated. In addition, buildings should be viewed holistically rather than only focusing on the envelope. They also felt that ASHRAE should be used as a minimum threshold. ▪ Stakeholders also noted that both the standard and technical regulations must arise from a law. SWOT ANALYSIS Strength Weakness - Work network - Lack of national certificates of thermal properties of - Sector interested in establishing uniform criteria for materials sustainability - Little availability of efficient construction materials - Establish the baseline for developing other - Need to import construction materials certificates - There is knowledge and experience with the international certificate - Existence of an applicable guide in the San Salvador Metropolitan Area (AMSS) Threat Opportunity - Increased cost - Incorporation of the Code into course curriculums - Delays on paperwork and permits - Develop local capacities for certification of materials - Not reflecting the local context - Generation of employment - Synergy with HAUS - Gradual progress toward a guide that is more demanding - Creation of markets for materials - Alliance with existing agencies in the country. 7 Interviews were conducted with: CODIA, MIMARENA, CNE, MOPC, CCCCMDL, MIVHE between January 2020 and August 2022. 5|P a g e RECOMMENDATIONS FOR THE BUILDING CODE PLANNING STAGE OF A BUILDING CODE The steps that must be followed before starting with the implementation of a Code are presented. A. Define and adopt the necessary standards One of the first proposals is to establish a mandatory Energy Efficiency Code for Buildings, in which reference is made to compliance with the Reglamentos Técnicos Salvadoreños (RTS)8. Recommendation Following the Mexican regulatory framework, it is recommended to include two additional Salvadoran technical regulations: RTS Thermal properties of building materials (Based on Mexican NOM-018-ENER 2011)9; and RTS Surface properties of materials (Based on Mexican NMX-U-125-SCFI-2016)10. B. Define a clear governance structure and institutional arrangements. In El Salvador, construction projects must go through a series of authorizations in order to be executed. For new construction projects that require a building permit, it is necessary to obtain online qualification and construction permits, i.e., a first approval of the preliminary project, followed by the issuance of an initial building permit, which is followed by a definitive permit and, finally, by an occupation permit. To obtain a building permit you need: ▪ Determine the competent authority in the municipality that the project is based. ▪ Project feasibility request: Information must be submitted on the owner, type and location of the project, construction area, number of levels, use and designate the professionals responsible for the planning and development of the project. ▪ Construction project approval is granted if the project satisfactorily meets all the requested requirements and confirms that the information is correct. If there are deficiencies in the project, the request and information is returned to the Project Manager to make corrections. Recommendation At the feasibility application stage of the project it is recommended to integrate an EE specialist. Before applying for a project permit it is recommended to request an opinion of compliance with the Code. It is recommended to request: • Certificates of the materials indicating their thermal properties and/or EE. • Certificates of the equipment, indicating its EE. • Calculation memory with what is necessary to comply with the provisions of the code, calculation of U- values, window wall ratio, etc. C. Define financing mechanisms to ensure financial resources It will be important to explore various financial mechanisms, in conjunction with the national and local government, financial sector and multilateral institutions, both for the pilot stage of implementation, and for demonstration projects. D. Define compliance and evaluation indicators and methodologies. Form of compliance Prescriptive: establishes the minimum parameters that each element of the construction must meet. These types of codes typically include minimum heat loss limits for windows, ceilings, and walls, and efficiency levels for heating, cooling, and lighting equipment. 8 El Salvador’s Technical Regulations 9 Specifies the characteristics, limits, and test methods for thermal insulators for buildings. 10 Establishes the specifications and test methods that must be met by the coatings for roofs of buildings, called "Coatings with high Solar Reflectance Index". This Mexican Standard applies to opaque liquid products of placement on site and to prefabricated products, which are marketed as "High Solar Reflectance Index coatings". 6|P a g e Table 3: Advantages and disadvantages of prescriptive code. Prescriptive Code Advantages Disadvantages ▪ Simple to meet, because each requirement must be met ▪ Restrictive, as it leaves little flexibility for architects and independently. engineers to propose innovative solutions. ▪ No energy calculations are needed. ▪ It does not allow designers to maximize the potential for savings due to interactions between different buildings. Recommendation It is proposed to introduce in the Energy Efficiency Code for Buildings the following prescriptive method, that is, offering packages with pre-established parameters for each component of the building. Defining the baseline To design the packages for the prescriptive method of the Building Code, the following methodology was followed: 1. Classify new buildings into typologies according to their final use, occupancy patterns and type of active systems used: ‒ Residential buildings: All new homes with a surface area greater than 60m2, excluding social housing. (For excluded dwellings it is recommended to prepare a guide with constructive solutions based on passive measures). ‒ Office Buildings: All new office buildings, with no size restriction. ‒ Tertiary buildings: All new buildings with use of schools libraries, bookstores, pharmacies, shopping centers, theaters, leisure centers, hotels, restaurants, hospitals. 2. Definition of the parameters for the reference buildings of each typology. Table 4: Reference buildings Parameters Value Residential use Office use Tertiary use Window-wall ratio %11 20 60 40 U-Value Walls W/m2 K12 3,499 3,499 3,499 Reflectance walls % 40 40 40 U-Value Ceilings W/m2 K 5,393 4,459 4,459 Reflectance Ceilings % 80 80 80 U-Value Windows W/m2 K 5.80 5.80 5.80 Shading coefficient 0.87 0.87 0.87 Shadows No Exterior Shadow No Exterior Shadow No Exterior Shadow HVAC EER13 2.73 3 2.73 3. To define the initial percentage reduction that the code will target, energy simulation exercises were carried out on real projects built in El Salvador. The objective was to propose three packages of measures that would improve thermal comfort inside the building while reducing the consumption associated with the use of AC equipment. The following parameters were considering: o Thermal transmittance of the exterior walls. o Shade on exterior windows. (Meters). U-value (W/m2K). o Window-wall ratio of the facades. (%) o Thermal transmittance of exterior windows. o Thermal transmittance of the roof. U-value (W/m2K). U-value (W/m2K). o Coefficient of solar heat gains of exterior o Efficiency of AC equipment. COP15 windows. G-value (dimensionless)14. (dimensionless). Based on the simulation results, packages were assembled that conform with a 20% final energy reduction compared to the reference building (see Table 5). This percentage was chosen as the initial goal for the introductory stage of the Code, bearing in mind that every two years it can be progressively tightened to achieve greater savings. 11 A window to wall ratio is a measure of the amount of window area there is on a building relative to the total amount of exterior wall area. 12 Watts-per-meter-square-kelvin. Used to determine the U-value which is the rate of transfer of heat (in watts). The lower this value, the better a product is at insulating a building. 13 EER - Energy Efficiency Ratio. Describes the efficiency of the system at peak usage. 14 The G-value is a measure of how much solar heat is allowed in through a particular part of a building. A low g-value indicates that a window lets through a low percentage of the solar heat. 15 COP – Coefficient of performance. Ratio of heat removed over work required. 7|P a g e EE packages for social housing All new homes, houses and apartments built subject to a social housing policy and all dwellings with a built-up area equal to or less than 60m2 must meet or exceed all parameter values of one of the packages shown in Table 5. Table 5: Packages of EE measures for social housing consistent with 20% energy reduction EE Social Housing Packages of Measures Parameters Package 1 Package 2 Package 3 Window-wall ratio % 15 20 20 U-Value Walls W/m2 K 0.50 3,499 3,499 Reflectance walls % 60 60 40 U-Value Ceilings W/m2 K 0.80 0.80 1.5 Reflectance Ceilings % 80 10 80 U-Value Windows W/m2 K 5.80 5.80 2.6 Shading coefficient 0.87 0.39 0.39 Shadows No Exterior Shadow No Exterior Shadow 0.30 HVAC EER 2.73 2.73 2.73 Reduction of final energy (%) 37.05 36.19 30.91 Energy reduction (kWh/m2 p.a.) 30.83 16.48 19.64 Reduction of CO2 emissions (kg/m2 year) 16.45 16.71 18.32 Reduction of the cost of public services (US$/p.a.) 649 633 541 Below are the energy balances of the baseline for social housing and the three packages studied: Figure 4: Baseline energy balances of the social housing 8|P a g e EE Packages for Residential Buildings All new homes, houses, and apartments with a built-up area equal to or greater than 60m2 other than social housing must comply with all the values in at least one of the packages shown below: Table 6: EE Packages for Average Housing consistent with 20% energy reduction EE Residential Package of Measures Parameters Package 1 Package 2 Package 3 Window-wall ratio % 15 20 20 U-Value Walls W/m2 K 0.50 3,499 3,499 Reflectance walls % 60 60 40 U-Value Ceilings W/m2 K 0.80 0.80 1.5 Reflectance Ceilings % 80 10 80 U-Value Windows W/m2 K 5.80 5.80 2.6 Shading coefficient 0.87 0.39 0.39 Shadows No Exterior Shadow No Exterior Shadow 0.30 HVAC EER 2.73 2.73 2.73 Average housing Reduction of final energy (%) 27.02 28.86 26.42 Energy reduction (kWh/m2 p.a.) 24.48 23.63 23.94 Reduction of CO2 emissions (kg/m2 year) 8.98 8.67 8.79 Reduction of the cost of public services (US$/p.a.) 515 497 503 Residential Reduction of final energy (%) 36.6 32.09 29.58 Energy reduction (kWh/m2 p.a.) 24.19 21.21 19.55 Reduction of CO2 emissions (kg/m2 year) 8.88 7.78 7.17 Reduction of the cost of public services (US$/p.a.) 509 446 411 Below are the energy balances of the baseline for average and residential housing, and the three packages studied: Figure 5: Baseline energy balances for average housing 9|P a g e Figure 6: Baseline for residential housing EE Packages for Offices All new office buildings must meet all values of at least one of the packages shown below: Table 7: EE Packages for Offices EE Office Packages of Measures Parameters Package 1 Package 2 Package 3 Window-wall ratio % 40 U-Value Walls W/m2 K 3,499 1.2 3,499 Reflectance walls % 60 60 15 U-Value Ceilings W/m2 K 0.80 0.80 1.5 Reflectance Ceilings % 80 10 80 U-Value Windows W/m2 K 2.6 5.80 2.6 Shading coefficient 0.39 0.87 0.39 Shadows No Exterior Shadow No Exterior Shadow 0.30 HVAC EER 4.49 4.49 3 Office 1 Reduction of final energy (%) 28.67 26.46 27.74 Energy reduction (kWh/m2 p.a) 41.41 38.20 40.06 Reduction of CO2 emissions (kg/m2 year) 15.24 14.06 14.74 Reduction of the cost of public services (US$/p.a) 29,459 27,175 28,499 Office 2 Reduction of final energy (%) 27.58 27.84 25.28 Energy reduction (kWh/m2 p.a) 39.83 40.21 36.49 Reduction of CO2 emissions (kg/m2 year) 14.66 14.80 13.43 Reduction of the cost of public services (US$/p.a) 16,769 16,929 15,363 10 | P a g e Below are the energy balances of the baseline for offices buildings and the three packages studied: Figure 7: Baseline energy balances for office 1 Figure 8: Baseline energy balances for office 2 11 | P a g e EE packages for tertiary buildings All new commercial and municipal buildings (schools, libraries, bookstores, pharmacies, shopping centers, theaters, leisure centers, hotels, restaurants, hospitals etc.) must comply with all the values of at least one of the packages shown in Table 8. Table 8: EE Packages of Measures for Tertiary Buildings EE Tertiary Packages of Measures Parameters Package 1 Package 2 Package 3 Window-wall ratio % 30 U-Value Walls W/m2 K 1.8 3,499 3,499 Reflectance walls % 60 60 15 U-Value Ceilings W/m2 K 1.5 0.80 1.5 Reflectance Ceilings % 80 10 80 U-Value Windows W/m2 K 5.80 5.80 2.6 Shading coefficient 0.87 0.60 0.39 Shadows No Exterior Shadow No Exterior Shadow 0.30 HVAC EER 5.5 5.5 4.9 Hotels Reduction of final energy (%) 26.39 27.19 32.53 Energy reduction (kWh/m2 p.a) 55.13 56.72 67.41 Reduction of CO2 emissions (kg/m2 year) 19.71 20.29 24.21 Reduction of the cost of public services (US$/p.a) 23211 23881 28382 Hospitals Reduction of final energy (%) 26.39 27.19 32.53 Energy reduction (kWh/m2 p.a) 72.24 80.74 89.96 Reduction of CO2 emissions (kg/m2 year) 26.51 29.63 33.02 Reduction of the cost of public services (US$/p.a) 30,415 33,994 37,876 Below are the energy balances of the baseline for hotels and the three packages studied: Figure 9:Baseline energy balances for hotels 12 | P a g e Figure 10: Baseline energy balances for hospitals Estimating impact potential Information was received on the number of permits and square meters granted per department in the last five years for the different types of buildings in the Metropolitan Area of San Salvador (AMSS). Consequently, impact projections were only made for AMSS based on the average square meters built from 2016 to 2021 (Table 9). Table 9: Constructed area in the AMSS from 2016 to 2021 (Values in m2) Typology 2016 2017 2018 2019 2020 2021 Total Average built per year Office 39.87 26,646.45 82,856.37 23,089.89 8,364.16 132.58 141,129.32 28,225.86 Tertiary 287,676.75 613,008.49 231,536.10 449,007.53 217,360.98 24,370.28 1,822,960.13 364,592.03 Residential 58,215.41 284,997.20 382,723.02 212,005.83 142,488.49 35,411.12 1,115,841.07 223,168.21 Total 345,932.03 924,652.14 697,115.49 684,103.25 368,213.63 59,91398 3,079,930.52 615,986.10 To establish the CO2 mitigation potential that the implementation of the Code would have in the AMSS, and assuming that the construction trend continues for the next five years, four scenarios were established: o 100% of new buildings adopt the proposed o 20% of new buildings adopt the proposed building code. building code. o 50% of new buildings adopt the proposed o BAU (Business as usual) that 0% of new building code. buildings adopt the proposed building code. The emission reduction averages per square meter and by type were then obtained using the results of the energy simulation exercises. Table 10: Reduction of energy and average CO2 per m2 according to the typology Typology Percentage Average reduction Energy (kWh/m2year) CO2 emissions kg/m2 year) Office 4.58% 39.37 25.56 Tertiary 59.19% 70.37 14.49 Residential 36.23% 22.66 11.31 13 | P a g e Based on this data and starting implementation of the Code in 2023, it is estimated that the following savings can be obtained by 2050: Figure 11: All new AMSS buildings reduction of tCO2e/year It is estimated that, if 100% of AMSS's new buildings implement the measures described in the code, a cumulative mitigation of 25,580 tCO2e could be achieved by 2025, 59,688 tCO2e by 2030 and 230,225 tCO2e by 2050. IMPLEMENTATION STAGE OF A BUILDING CODE Checking compliance During the design stage, developers and designers should review whether their project meets the requirements of the Building Energy Code. The results of the calculations and criteria used to calculate the preliminary minimum energy performance must be sent to local authorities to verify compliance before building permits can be issued. Local authorities must review the plans, calculation results and certificates of building materials. During the construction phase there should be a verification that the construction is carried out in accordance with what was presented in the design stage, and that the changes made comply with the provisions of the Code. Recommendation During the construction stage, verification of compliance with the Code requires random visits to the site. In small buildings, there must be at least two inspections: one during construction and one upon completion. In large buildings, numerous inspections are needed as construction is carried out in several phases. On-site inspectors should also check if there were any changes to what was proposed at the design stage. Before the building is occupied, it is recommended to commission the air conditioning and ventilation equipment to ensure its operation. Also, it is advisable to do a tightness test to locate air leaks in the building envelope and help the builder repair the leaks and thus reduce energy losses. Once the building is occupied, it is recommended to measure energy consumption for at least the first two years of occupancy to better understand usage patterns and allow adjustment of cooling, ventilation and lighting systems. This data will help calibrate the technical parameters of the Code. Enforce the building energy code It is recommended that a body be established to control and supervise the work of inspectors,and to introduce incentives, and sanctions such as: Incentives ▪ Economic: financing at preferential rates, reductions in ▪ Marketing: having a seal of national recognition, staff insurance premiums, preferential quotas in water and retention, entering other markets energy services, verification subsidy. 14 | P a g e ▪ Fiscal: property discounts, discount on water ▪ Capacity building: technical assistance, staff training, procedures, payroll taxes. access to technical material ▪ Time: administrative simplification, reduction of ▪ Normative: establish regulations that obligates buildings procedures, prioritization by compliance. to comply with the standard, condition rent to compliance. Sanctions ▪ Fines ▪ Do not grant occupancy permits ▪ Demolitions In order to apply these incentives and sanctions, the Energy Efficiency Law needs to be published. Training and awareness raising Once the first consensus version of the Code is available, it is proposed to create an Energy Verifier, who will be responsible for reviewing and approving the EE parameters of the Code. In addition, it is recommended to start working on the design of an easy-to-use tool to assess compliance with the code. In parallel, it will be important to implement a training and awareness strategy for the following target groups: o Target group 1: Local governments o Target group 3: Building developers and (training) owners (training) o Target group 2: Construction o Target group 4: Industry, building owners professionals (training) and users (awareness-raising) Monitoring compliance at the local level It is recommended that local authorities have a database where they record the main monitoring indicators for buildings that comply with the Code. The databases should be delivered to the CNE periodically to check that the results and objectives are consistent to better understand the training needs and progress to date. Recommendation The proposed indicators are: typology, construction area, measures implemented and technical parameters, and electricity consumption. MONITORING STAGE OF A BUILDING CODE During the monitoring phase, compliance rates with the Code should be evaluated and areas of opportunity identified in implementation. Municipalities should establish a process to report, aggregate, and analyze compliance rates at each stage (design, construction, before occupancy, and when the building is occupied) for each type of building. Analyze compliance statistics locally Local governments should establish a process to inform, aggregate, and analyze compliance rates at each stage (design, construction, before occupancy, and when the building is occupied) for each typology. Recommendation It is proposed to create a computer application where at the local level the main indicators of the buildings by typology are recorded during the administrative process of review of construction permits. This application can be connected to the CNE so that they automatically have access to the information. In this phase, only electricity is considered because the measures proposed in the Code are focused on reducing the energy consumption derived from the air conditioning of buildings. At a later stage, monitoring of gas and water consumption could be incorporated. Communicate compliance results and apply incentives and sanctions Publishing compliance results and enforcement actions gives more credibility to governments and local authorities. It raises awareness about the importance of builders complying with regulations and allows consumers to make informed decisions when selecting construction companies. Recommendation One recommendation would be to create a National Award for buildings that demonstrate greater energy savings in compliance with the Code. 15 | P a g e Openly communicate compliance trends Currently, the Ministerio de Medio Ambiente y Recursos Naturales (MARN)16 does not integrate the contributions of the building sector into the national emissions inventory, but in the future, it is expected that it will be included in the NDCs. EVALUATION STAGE Generate different metrics and evaluate opportunities for improvement of implementation at the local level. By evaluating the results of implementing the Code, it can be determined whether national energy mitigation and saving targets are being met. Update the Energy Efficiency Code regularly based on lessons learned from the assessment. It is proposed that the Code be updated every three to five years to ensure that they are aligned with international best practices and technological developments. With these regular updates, the CNE can identify gaps identified through the assessment and adjust its new national priorities. ROADMAP EL SALVADOR The objective of the roadmap is to establish a path and regulatory framework that will consolidate EE measures in the building sector in El Salvador. To align the Energy Efficiency Code to El Salvador’s energy policy, it is proposed to establish 2030 and 2050 as target dates. This Roadmap seeks to: o Achieve greater collaboration between the o Provide consistency, commitment, and clarity different key players in the construction sector. in EE public policies in the country. o Establish a long-term strategy for EE in o Support the establishment of a market for buildings. energy efficient buildings, supported by the construction industry. ROADMAP ASPIRATIONAL GOALS The first step of a Roadmap is to set realistic and aspirational goals for the construction sector. The following goals are proposed, which should be discussed and agreed with the CNE. 2025: El Salvador implements the mandatory Energy Efficiency in Construction Code. 2030: All localities and municipalities have adopted and apply the Building Code. 2050: Zero-emission buildings are built as common practice in El Salvador. MAIN BARRIERS TO IMPLEMENTATION The second step would be to address the main barriers and challenges identified in this study. Institutional arrangements The construction sector involves many actors who, although they are all interested in working on the issue of sustainability, sometimes do so without coordinating, or have conflicting interests. Institutional arrangements ensure coordination among the various actors, so that priorities at the national level are clear to local governments, and at the national level the implementation challenges at the local level are understood. Recommendation ▪ Continue with plans to establish a Sustainable Buildings Committee led by the CNE. ▪ Agree with the different actors on the contents of the Code in its different phases of approval. 16 Ministry of Natural Resources 16 | P a g e Regulatory Framework It is not enough to draft an Energy Efficiency Code in construction, it is important to strengthen the regulatory framework. Recommendation Strengthen the regulatory framework: approving the Energy Efficiency Law, integrating new Technical Regulations with a focus on construction materials. Lack of information Improve the collection and availability of information on building characteristics by type and their energy use at the local level to aid decision-making. Without information to establish and understand the baseline, it is difficult for policymakers and construction stakeholders to initiate work to promote EE and include buildings in the climate mitigation strategy. Recommendation Generate a database with the collection of information on the characterization of energy consumption by type, as well as construction characteristics of buildings. PROPOSED ROADMAP Figures 12 and 13 present the proposed Roadmap for the efficient buildings sector in El Salvador, showing short, medium, and long-term goals. Figure 12: Proposed long-term roadmap 17 | P a g e Figure 13: Short-term Roadmap (proposed) CONSIDERATIONS AND NEXT STEPS The calculation of baselines for each type of building has relied on certain assumptions about the performance of the building, the building materials, AC equipment, the building’s use, and the behaviors of building occupants. It is therefore recommended to carry out field surveys to gather more information on the: • Inventory of the construction systems currently used in the building stock , by type • Presence of AC equipment and its efficiency characteristics, by different typologies • Statistics of schedules of use and energy consumption of AC equipment. Acknowledgement: This study would not have been possible without generous financial support of the UK’s Department for Environment, Food and Rural Affairs (DEFRA). Disclaimer: This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 18 | P a g e