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Survey Confirms Broad Acceptance of Sustainability, Highlights Challenges for LEED
Posted by: | CommentsA recent survey conducted by California law firm Allen Matkins showed strong, broad support for green building in general, but also indicated less enthusiastic support for the USGBC’s LEED certification program as the primary benchmark of the movement. Specifically, the survey found that respondents’ willingness to obtain LEED certification had slipped from 76% in the previous year’s survey, to 66% in this year’s results. What gives?
The survey included responses from 900 design professionals, contractors, subcontractors, construction planners, building owners and others in the industry. According to Bryan Jackson, one of the survey’s authors, the primary reasons for the decline in willingness to obtain LEED certification have to do with competition from other certification agencies, newly enacted green building regulations and concerns over carbon footprints. While some of these new or emerging regulations require LEED certification, the majority do not favor a specific rating system.
It’s worth pointing out that although greenhouse gases and carbon impacts – likely to be highly regulated in the future, sooner rather than later – are issues that LEED has only indirectly addressed. At least until recently. New LEED requirements being introduced this year include a “carbon overlay” that tries to account for greenhouse gas emissions And another notable change coming down the pipe from LEED in 2009 is the ability to weight regional differences, which impact SS credits in particular. For example, a school, hospital or other institution being constructed in a rural or less-dense suburban area may be challenged to gain SS credits and thus put at an immediate disadvantage to an infill location.
Notably, the survey also highlighted the lack of consensus in the development and construction community regarding the risks and costs involved with building green. Survey respondents “felt that construction risks increased for green projects compared with traditional projects” and the authors (Allen Matkin evidently specializes in construction law) are focused on addressing green building and sustainability implications in construction contracts, leases, design agreements other legal documents. Says the survey author Jackson, “When people draft contracts without addressing these issues, you have fights about who is responsible. We want everyone involved to be as educated as possible so that we can write contracts in a way that will avoid litigation down the road.” Clearly a good practice to follow.
The survey also heralds the growing use of Building Information Modeling (BIM), which employs computer-aided design to produce three-dimensional models of projects for incorporating green design elements from the very start of and throughout a project. Although many of those surveyed estimate that green construction adds between 1% and 4% to the cost of a project, those who use BIM “say that if you design for green and sustainable elements from the very beginning, you will be able to come out with a project in that could certify to Green, LEED, Gold or Silver without spending any more than conventional construction, which is pretty amazing” according to survey results.
At our firm, we have seen this to be the case as well. Integrated design-build efforts, aided by thorough understanding of high-performance and sustainable construction principles – and further streamlined through BIM technologies – usually mean that our clients can “go green” and achieve LEED certification at little or no cost. In fact, the combination of time savings, tax credits, higher operating margins and project differentiation often mean that a LEED project is in fact more lucrative than a traditional project.
Global Leaders Analyze Green Infrastructure Investments
Posted by: | CommentsThe world’s political, economic and business leaders released a report this week calling for $515 billion in annual investments into the broader development and establishment of a clean energy infrastructure worldwide. Leaders further encouraged the pursuit of aggressive energy efficiency programs to squeeze better performance out of legacy fuels in an effort that would reinforce the effectiveness of clean energy technologies.
“As the cost of clean energy technologies decreases and policy support is put in place, the shape of the eventual energy system is emerging. But the investment demand is substantial,” the report said. “Despite the recent turmoil, the world’s financial markets are up to the financing challenge, but they will need continued action from the world’s policy-makers and leading corporations.”
The report’s authors, Max von Bismarck and Anuradha Gurung from the World Economic Forum, and Chris Greenwood and Michael Liebreich from New Energy Finance, further assert that “enormous investment in energy infrastructure is required to address the twin threats of energy insecurity and climate change. In light of the global financial crisis, it is crucial that every dollar is made to ‘multi-task’ to create a sustainable low-carbon economy.”
The report identifies a series of eight specific clean-energy sectors that are expected to drive the emergence of this new infrastructure:
- onshore wind
- offshore wind
- solar photovoltaic
- solar thermal electricity generation
- municipal solar waste-to-energy
- sugar-based ethanol
- cellulosic and next generation biofuels
- geothermal power
Every year, business executives, economists, political leaders, global NGOs and various intellectuals gather in Davos, Switzerland at a cloister hosted by the Geneva-based World Economic Forum. Their goal: tackling issues that improve people’s lives. In the past, issues ranging from third-world health crises to trade relations with China and the developing world have carried the day. This year, even in the midst of unprecedented economic chaos – or perhaps in large part because of it – the World Economic Forum (in partnership with London-based New Energy Finance) has placed green infrastructure investment at the heart of its dialogue.
Indeed, the performance of investments in these types of technologies can already be seen. According to the report, clean energy investments increased from around $30 billion in 2004 to over $140 billion by 2008. The report shows that despite the economic disasters of 2008, an index of the world’s 90 leading clean energy companies had a five-year compounded annualized return of almost 10%.
Notable for real estate investors and developers – as well as for LEED professionals – the report echos claims made throughout our business, namely that “buildings can be even made energy positive, meaning they produce more energy than they consume” through the adaptation of technologies such as “integrated solar PV (roof, facade, window), chromic glass, heat-exchangers/pumps, smart devices, and smarter architectural building designs.” And, “in the residential sector, nearly 80% of the investment would be directed at just one area–installing more efficient heating and cooling systems in existing and new homes.”
The report also acknowledges that we need to start with the low-hanging fruit, where we can make immediate improvements to energy efficiency that create immediate energy savings and short-term payback on capital invested. Specifically, the report says that the importance of energy efficiency “cannot be underestimated,” citing a McKinsey Global Institute study that estimates growth in energy demand could be cut in half by 2030 simply through such means. The greatest number of global efficiency opportunities lies in the industrial sector (49%), followed by residential (23%), transportation (15%) and commercial (13%).
And whether you support increased governmental regulation or not, the report contends that the only way for a concerted, coordinated effort to succeed is if governments become involved on a variety of levels and for a long period of time, to ensure these new tools are used. “Policy-makers should enforce energy efficiency standards. Utilities and energy-intensive industries will respond to carbon prices and other price signals, but many individuals and businesses will simply not do so,” the report says. “As a result, there will always be a role for regulation to mandate certain changes in behavior, such as appliance efficiency and standby power limits, corporate average fuel economy (CAFE) standards and building codes.”
Finally, it’s worth noting that a direct connection can be drawn from this report to the recent economic stimulus package that was passed in the United States, in which some very significant sums of money were committed to the transformation of federal buildings into energy efficient, high-performance facilities. The report says, “With central, regional and local government accounting for 35% to 45% of economic activity in all of the world’s largest economies, public sector purchasing can be a powerful force. Clean energy use should be mandated in public procurement, which would create guaranteed markets for leading innovators in transport, heat and electricity.”
