Green Building - Overview & Emerging Opportunities

Green Building – Overview & Emerging

Opportunities

November 2011

Vidhi Yaduvanshi

Environmental & Building Technologies

Frost & Sullivan

Malaysia

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Table of Contents

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How large is the Green Buildings market?

What are the Green Building Rating Tools used ?

What are the Regulations, Policies and Incentives by Major Regions?

What is the Green Building Development in Select Countries?

6 What are the emerging Opportunities?

1 What is the Current Scenario?

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Going way forward there will be huge disparity in supply and

demand of water and energy sources

World’s population to

reach 6.96 billion in

2011; 8.11 billion in

2025; 9.48 billion in

2050

Increasing demand for

natural resources;

WATER and ENERGY

Declining fossil fuelDeclining fresh

water sources

Increasing

demandIncreasing

demand

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Buildings account for almost 40% of the primary energy

consumption and almost 35% of the carbon emission

Energy demand in terms of MtC (million tons carbon)

World Carbon Emissions by Sector, 2000

Energy demand in terms of EJ (exajoule or 1018 joules)

World Primary Energy Consumption by Sector, 2000

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Contents

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Australia, South Korea, Japan and Singapore are relatively

more developed green building markets in Asia Pacific

China: China has the world’s

largest construction market. Until

2020, China will build half of the

world’s new buildings.

India: According to the Indian Green

Building Council, green building

opportunities in India will likely

generate investments of up to

$5.00 billion by 2012

South Korea: Dubbed the Two Million

Green Home Initiative, South Korea

plans to build one million and

renovate an additional one million

homes to meet stringent

environmental and energy

consumption standards by 2018.

Japan has launched the "Green

Economy and Societal

Transformation" that is in line

with the Japan Green New Deal,

which aims at boosting the

economy using environment

and energy-related

technologies, and incorporates

a medium-term policy to realize

a low-carbon social system.

Singapore is another country that is

successfully implementing energy

efficiency standards for the

buildings. Residential sector of

building construction market is most

developed due to the demand in the

market.

Australia: The federal and state

governments have ruled that all

new government buildings

should comply with 5 Star label

of Green Building certificate.

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Major Building Environmental Assessment Tools

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Developed Western economies have well established rating

tools

Green Building Rating Tool Remarks Name of Organization (Country)

BRE Environmental Assessment

Method (BREEAM)

It sets the standard for best practice in

sustainable design and has become the

main measure used to describe a building's

environmental performance.

• UK Green Building Council

• Dutch Green Building Council

Comprehensive Assessment

System for Building Environmental

Efficiency (CASBEE)

This tool assess buildings in two areas;

building environmental quality and

performance, and building environmental

loadings.

• Japan Sustainable Building

Consortium

DGNB Certification System There are six criterion to be considered

under this rating tool; ecological quality,

economic quality, sociocultural and

functional quality, technical quality, process

quality, and site quality

• German Sustainable Building

Council

Green Star The system considers a broad range of

practices for reducing the environmental

impact of buildings and to showcase

innovation in sustainable building practices,

while also considering occupant health and

productivity and cost savings

• Green Building Council of Australia

• New Zealand Green Building

Council

• Green Building Council of South

Africa

IGBC Green SEZ Rating System India has further developed IGBC Green

SEZ Rating System as an extension of the

Green SEZ guidelines which encourages

the projects to exceed the requirements of

many codes and standards.

• Indian Green Building Council

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Most Asian nations are still to gain the established GBC status

Region Established GBC Emerging GBC Prospective GBC Associated Group

Definition: Green

building councils with

WGBC full member

status

Definition: Green

building councils with

WGBC emerging

member status, working

towards achieving full

member status

Definition: A group who

has been officially

recognized by WGBC as

the entity establishing a

GBC in their country and

working towards gaining

WGBC emerging

member status

Definition: A group who

has been recognized by

WGBC as an entity

establishing a GBC in

their country and

working towards gaining

WGBC prospective

member status

Asia Pacific Australia Indonesia Hong Kong China

New Zealand South Korea Thailand

India Malaysia Vietnam

Japan Philippines

Singapore Sri Lanka

Taiwan

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Regulation

Country Relevant Legislation and Laws Year of

Enactment

Relevant Growth Opportunities

Australia • Australian Federal, State, Local

governments announced to transform all

Government buildings into Green

Buildings

• Carbon Neutral Building – 2020 challenge

Amended in 2009 Significant growth is expected in

government buildings sector, Energy

Efficiency will be the focus in Green

Buildings due to Neutral Carbon

emission goals

Singapore 2030 – Second Master Plan to achieve 80%

of Green Mark certification within the

buildings construction market

2009 Heavy investment and rapid growth in

Green Building industry are expected

Hong Kong • Government buildings will install energy

efficient lighting systems, retrofit plumbing

with water saving devices

• Carbon audits

2009 Total $900 million government fund will

be allocated to these projects within next

two years

Japan • Prime Minister’s 25% Carbon Emission

Reduction Goal by 2020

• Kyoto Protocol Target Achievement Plan

• Environmental Action Plan under MLITT

Amended in 2009

2004

Rise in overall market awareness,

international participation and market

growth are expected

Malaysia • Code of Practice on energy efficiency and

use of renewable energy for non-

residential buildings

• Energy efficiency and construction

guidelines for Malaysian industries

2007

2007

Energy efficiency will be given priority for

Green building certification.

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Incentive and Funding Trends

Asia Pacific

Japan provides financing of up to JPY2.5 million through the Housing Loan Corporation to adapt houses to energy-

saving standards

In Malaysia, there is provision for import duty and sales tax exemption on equipment used in energy conservation that

is not produced locally. Equipment purchased from local manufacturers is given sales tax exemption

The South Korean government via its state-run Korea Finance Corp (KoFC) would invest KRW1.5 trillion to set up a

fund in August 2010 to help environmental businesses in the country

Singapore

In January 2005, BCA launched the Green Mark Scheme in order to promote environmental awareness in the

construction and real estate sectors. There are three levels of financial incentives (gold, gold plus, and platinum): The

incentives range from SGD$3 (around US$2) per square meter to SGD$6 (around US$4) per square meter of gross

floor area (GFA) for new buildings; retrofit of existing buildings is eligible for about 40 percent of the incentive for new

buildings per square meter.

Thailand

The Energy Conservation (ENCON) Fund was established to provide financial support to government agencies, state

enterprises, non-government organizations, individuals and businesses that wish to follow the act by implementing

measures to increase efficiency in energy utilization.

The ENCON Fund receives revenues from a tax of THB$0.04 (US$0.001) per liter on all petroleum products sold in

Thailand.

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China offers numerous opportunities on account of being one

of the largest construction markets globally

• According to China’s 2006 “Green Building Evaluation

Standard,” a designated Green Building reduces pollution

emitted, maximally protects the environment and reduces the

consumption of natural resources such as water, land, and

non-renewable energy throughout its lifecycle.

• As China mostly manufactures low-technology building

products, there is a much larger market for specialized and

cutting edge technologies.

• According to the Ministry of Housing Urban-Rural

Development (MOHURD), China will build at least 2 billion

square meters of residential and commercial floor space

annually until 2020.

• China is seeking to retrofit 43 billion square meters of

building space for improved energy efficiency. China is the

world’s largest construction market, and now the demand for

green construction products, services and technologies are

becoming the trend in the China market.

Opportunities in China:

• Green-design techniques

• HVAC systems

• Solar products

• Grey water and water reuse systems

• New building materials

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With established green rating tools, Singapore and Taiwan are

developed green building markets in APAC

• Singapore has gone into high gear to encourage the local construction industry to

adopt green features in their projects. The government has committed

approximately $47 million worth of incentives for creating a green built environment.

• Singapore’s construction demand for 2010 is estimated to reach between $16 billion

and $20.5 billion. The bulk of the year’s demand is expected to come from the

public sector, which is projected to form 65% of total demand.

• Private sector construction demand is expected to be slightly more upbeat than the

preceding year amount to between $5.3 billion and $6.89 billion. Private residential

projects are also projected to increase gradually, in tandem with the improved

market sentiment.

• According to Building and Construction Authority (BCA), the average annual

construction demand for the next two years, 2011 and 2012, is estimated to range

between $13.63 billion and $18.94 billion respectively.

• In July 2009, Taiwan enacted a new law requiring all new public buildings to be built

using at least 30% of Green Building materials. Furthermore, in January 2010, the

government designated the Intelligent (Smart) Green Building as one of Taiwan’s

strategic industries to develop.

• The Taiwan government will invest $125 billion to upgrade Taiwan’s national

infrastructure by constructing twelve major public projects by the end of 2016. In

addition, the private sector invests every year an additional $12.5-$18.5 billion to

construct residential, commercial, and industrial buildings.

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Lack of green building materials is hampering growth in green

building construction in India

• Building / construction is one of the largest energy consuming sectors in India. The

design of an energy efficient building is an integrated approach. Both new and old

(retrofit) buildings offer excellent opportunities for deploying energy efficient technologies

which can result in substantial reduction of energy consumption, thus creating demand

for green building products.

• The lack of materials and equipment is one of the major issues in green building

construction in India.

• To meet this demand, the GBC is working with several manufacturers in India and

abroad to provide new sources of supply.

• Very limited green materials and equipment are available in India such as fly-ash

cement, fly-ash block, recycled aluminum, recycled steel, recycled tiles, low VOC paints,

bamboo based products, green roof and recycled wood.

• However there is a huge market for green materials, which is still untapped. Products

with strong potential in India are - composting toilets, waterless urinals, low VOC

adhesives & sealants, certified carpets, certified wood, certified cooling towers, living

machines, HFC based high efficiency chillers, and building controls, and much more.

Certified Green Buildings in India, 2009-2010

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Contents

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Emerging Opportunities – Major Themes

Top 10 Themes in Green & Smart Buildings

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Top 10 Technologies in Green & Smart Buildings

Emerging Opportunities – Major Technologies

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For Additional Information

Donna Jeremiah

Corporate Communications

Asia Pacific

+603 6204 5832

[email protected]

Carrie Low


Asia Pacific

+603 6204 5910

[email protected]

Vidhi Yaduvanshi

Consultant

Environment & Building Technologies

[email protected]

Dewi Nuraini


Indonesia

+62 21 571 0838

[email protected]

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