The building and construction sector generates substantial social and economic benefits, employing over 111 million people worldwide and contributing approximately ten percent to the global gross domestic product (UNEP SBCI, 2007). At the same time, the built environment contributes significantly to global raw materials use, energy use, solid waste generation, and greenhouse gas emissions (see Figure 1). Attempting to address these sustainability issues, the rapidly growing "green building" industry is employing cost-effective and environmentally mindful construction practices that do not usually require new or costly technologies.
Green building refers to the shift from standard building practices, which are typically guided by short-term economic considerations, to "best practices" emphasizing quality construction, energy efficiency, indoor air quality, conservation of water and other natural resources, and thoughtful planning and design for human productivity and health. Importantly, green building employs a "life-cycle approach," estimating the cumulative environmental and social impacts of a building throughout its lifespan, from construction to use to demolition. This holistic approach to building is not new, but has only recently gained mainstream reputability. The continued adoption of green building on a global scale seems promising as more and more countries and building organizations seek to establish standards and incentives to promote sustainable building practices.
Figure 1: Share of the Built Environment in Pollution Emission and Resource Use
Source: EarthTrends, 2007 using data from UNEP SBCI, 2006.
The Benefits of Green Building
In light of rising energy costs and increasingly scarce natural resources, it is not surprising that the global green building market is growing rapidly, with many countries such as the U.S. and India experiencing double-digit annual growth. With strategies that include using recycled building materials, installing energy saving appliances, and maximizing natural lighting in building design, green buildings typically reduce energy use by 25 to 35 percent--up to 80 percent in some of the best performing buildings--resulting in significant long-term cost savings and reduced greenhouse gas emissions. Some research also shows a positive link between green office spaces and employee productivity, retention and health (LEED-ND, 2006), which also have large, although not easily quantifiable, economic benefits (see Figure 2). Green buildings generally obtain these benefits from design adaptations as opposed to new technologies. For example:
- Studies estimate that using recycled building materials saves 12 to 40 percent of the total energy used during materials production (UNEP SBCI, 2007).
- Designing durable and adaptable buildings reduces the energy costs of demolition and new construction.
- Using non-toxic paints, glues and building materials prevent additional environmental impact and high waste treatment / disposal costs during demolition.
- Widely available energy efficient appliances create energy savings while reducing greenhouse gas emissions.
- Strategic building design can maximize natural lighting and ventilation, which reduces energy needs and improves indoor air quality.
- A dual plumbing system can utilize recycled water (not suitable for drinking) for flushing toilets.
The upfront cost of green construction tends to be higher than that of conventional construction, although research on this topic is still underdeveloped. However, existing studies indicate that the difference is minimal (only two percent according to a 2003 study sponsored by the U.S. Green Building Council), and that the long-term payoffs quickly offset this initial investment. The typical payback period for projects in India, for example, is estimated to be between three and seven years (WGBC, 2007).
Figure 2: Financial Benefits of Green Buildings in the United States
| Type of Benefit | 20-year Net Present Value / sq. feet |
| Energy Savings | $5.80 |
| Emissions Savings | $1.20 |
| Water Savings | $0.50 |
| Operations and Maintenance Savings | $8.50 |
| Productivity and Health Benefits | $36.90 - $55.30 |
| Subtotal | $52.90 - $71.30 |
| Initial Investment in Green Building Practices | $3.00 - $5.00 |
| Total 20-year Net Benefit | $50 - $65 |
Source: USGBC Capital E Analysis, 2003.
Standards and Certification
Green building certification schemes have been multiplying throughout the world: 21 countries now have unique rating systems that set certification standards and guidelines. In Australia, for example, buildings certified through the market-based, voluntary Green Star system use 85 percent less energy, offset the CO2 emissions of 300 cars, and reduce potable water consumption and construction waste by 60 percent and 69 percent respectively. Similarly, buildings certified through Taiwan's government-owned, regulatory EEWH program have saved US$30 million in energy and US$4 million in water since 1999 (WGBC, 2007).
At the global level, the World Green Building Council (WGBC), established in 1999, is the foremost organization setting guidelines to promote green building and serves as an umbrella for national Green Building Councils around the world. Current member countries include Australia, Canada, Japan, United States, United Kingdom, India, Mexico, Argentina and Taiwan, with new councils forming in Brazil, Germany and China.
Figure 3: Map of World Green Building Council Activity
Source: WGBC, 2007.
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Box 1: Countries Interested in Forming Councils Under the World Green Building Council No current established green building rating system: Argentina, Chile, Colombia, Costa Rica, Ecuador, Egypt, Ghana, Greece, Guatemala, Hungary, Israel, Jordan, Kuwait, Malaysia, Nigeria, Philippines, Poland, Russia, Saudi Arabia, Switzerland, Thailand, Turkey and Vietnam. Has at least one established green building rating system: France, Hong Kong, Italy, Korea, Netherlands, Norway, Singapore and South Africa Has an established rating system but not currently seeking WGBC membership: Finland, Portugal, Spain and Sweden |
In countries where green building rating systems exist, the number of certified buildings is increasing. For example, the United Kingdom Green Building Council was established in 1990 and today has 73,125 certified green buildings with 285,250 projects awaiting certification (WGBC, 2007). Growth in this market is also reflected in the increasing number of professionals joining green building organizations and acquiring green building expertise.
The Future of Green Building
According to real estate and architectural experts, current growth in the green building market is not a short-lived trend, but the start of a permanent shift in how the world uses energy and natural resources within the spaces we live and work. However, there are many obstacles that may slow the growth of the green building industry. To begin with, knowledge of the long-term social, economic and environmental benefits of sustainable building practices is generally lacking among relevant stakeholders, including investors, insurance companies, property developers and buyers/tenants. Furthermore, current legislation and building standards generally neglect sustainability issues, focusing instead on the technical function of buildings (see Figure 4). Finally, there are a lack of official government policies and incentives to encourage green building.
Figure 4: Status of Building Standards Focusing on Sustainability Around the World (2000)
Source: Busch, 2000.
However, as green building becomes more mainstream, awareness and education will also increase, helping to overcome the above obstacles. In May 2007, leaders from 40 of the world's largest cities met and created a plan under the Clinton Climate Initiative to adopt energy efficiency, CO2 emissions, and green building guidelines and policies within their own cities. Projects will be funded by international banks and will be repaid with the energy savings.
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Box 2: Green Building in China China has the largest construction volume in the world. Over 80 percent of the nearly two billion square meters of new buildings constructed each year in China are categorized as high-energy buildings, consuming two to three times more energy per unit of floor space than those in developed countries. The Chinese Ministry of Construction has now established a target that energy consumption in new buildings should be 65 percent less than in existing buildings, and the government has established a tax and fees rebate system to help meet this goal. In 2006, a new federal building in Beijing became the first in China to pass the stringent Leadership in Energy and Environmental Design (LEED) certification, using 70 percent less energy and 40 percent less water than conventional buildings (Christian Science Monitor, 2006). Source: UNEP SBCI, 2007. |
Transitioning into Green Building
The rate and extent of transition into green building will differ between countries depending on regional logistical constraints, willingness to change, and available investment capital. In countries where markets for sustainable building materials are slow to develop, the green building market will be restricted to pilot projects. While developing countries must focus primarily on new construction, developed countries will need to pay equal attention to remodeling existing buildings. The new focus of many building professionals and organizations on green building and energy and resource efficiency will hopefully provide more insight on how to make green building widely accessible on a global scale.
RELATED LINKS:
United Nations Environment Program Sustainable Buildings & Construction Initiative (UNEP SBCI)
Natural Resources Defense Council (NRDC): Building Green
Leadership in Energy and Environmental Design (LEED)
World Green Building Council: Green Building Case Studies
EarthTrends
News: Building Sector Presents Significant Opportunity to Reduce CO2
News: New Initiative to Green Cities, Reduce Carbon Emissions
Domesticating the World: Converstion of Natural Ecosystems
Data table: Energy Consumption by Sector 2005 (pdf)
Other Publications
Buildings and Climate Change: Status, Challenges and Opportunities (UNEP SBCI, 2007)
