Editing IPCC:AR6/WGIII/Chapter-9 (section)

==== 9.9.7.2 Institutional Capacity ====

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The concept of institutional capacity is increasingly connected with the issue of public governance, emphasising the broad institutional context within which individual policies are adopted. Institutions are durable and are sources of authority (formal or informal) structuring repeated interactions of individuals, companies, civil society groups, governments, and other entities. Thus, institutional capacity also represents a broader ‘enabling environment’ which forms the basis upon which individuals and organisations interact. In general terms, capacity is ‘the ability to perform functions, solve problems and set and achieve objectives’ ( [[#Fukuda-Parr--2002|Fukuda-Parr et al. 2002]] ). Institutional capacity is an important element for regional sustainable development ( [[#Farajirad--2015|Farajirad et al. 2015]] ). The role and importance of institutional capacity is fundamental in implementing the building decarbonisation. Central and local governments, regulatory organisations, financial institutions, standardisation bodies, test laboratories, building construction and design companies, qualified workforce and stakeholders are key players in supporting the implementation of building decarbonisation.

Governments (from national to local) planning to introduce efficiency, RES, and sufficiency policies needs technical capacity to set sectoral targets and design policies and introduce effective and enforcement with adequate structure and resources for their implementation. Policies discussed and agreed with stakeholders and based on impartial data and impact assessments, have a higher possibility of success. Public authorities need technical and economics competences to understand complex technical issues and eliminate the knowledge gap in comparison to private sector experts, human and financial resources to design, implement, revise, and evaluate policies. The role of energy efficiency policy evaluation needs to be expanded, including the assessment of the rebound effect ( [[#Vine--2013|Vine et al. 2013]] ). For developing countries international support for institutional capacity for policy development, implementation and evaluation is of key importance for testing laboratory, standards institute, enforcement and compliances technicians and evaluation experts. Thus, in development support, addition to technology transfer, also capacity buildings for national and local authorities should be provides. The Paris Agreement Article 11 aims at enhancing the capacity of decision-making institutions in developing countries to support effective implementation.

Enforcement of policies is of key importance. Policies on appliance energy standards need to establish criteria for random checks and tests of compliance, establish penalties and sanctions for non-compliance. For building code compliance there is the need to verify compliance after construction to verify the consistence with building design ( [[#Vine--2017|Vine et al. 2017]] ). Often local authorities lack resources and technical capacity to carry out inspections to check code compliance. This issue is even more pressing in countries and cities with large informal settlements, where buildings may not be respecting building energy codes for safety and health.

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