Yannick Millet – EE and Sustainable construction professional
GREENBIZ 2016 Phnom Penh Green is Riel
Green Buildings
Presentation structure
1- Green Building definition
2- GB rating tools Vs Regulations
3- GB development triggers and obstacles
4- Financial aspect of GB
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1- GB definition
Source: Capital E
17% of fresh water consumption
25% of wood harvest
33% of CO2
emissions
30-40% of energy
used
40-50% of raw materials
used
Global Building Impacts
1. GB definition
What is a green building?
• Environmentally responsible and resource-efficient throughout their life-cycle.
• Designed, constructed and operated to reduce the overall impact on human health and the natural environment by:
Efficiently using energy, water, and other resources
Reducing waste, pollution and environmental degradation
Protecting occupant health and improving employee productivity
1. GB definition
• GHG Emission reduction potential
• Healthier working/living place
• Higher productivity
• Occupant Brand Value
• Lower operating costs
• Increased selling and renting value
Green Building benefits and savings
30% ENERGY
35% CARBON
30-50% WATER USE
50-90% WASTE COST
Source WorldGBC
1. GB definition
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2- GB rating tools VS regulation
How Green is my Building?
2- GB rating tools VS regulation
2. GB rating tools VS regulation
Sustainable Building (Zero Energy – Positive Energy)
Green Building (Certified against a Rating Scheme)
Resource Efficient Building (EDGE – IFC tool)
Energy Efficient Building (Building Code – Regulation)
Business As Usual Envir
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Building performance classification
What is a Green Building Rating Tool?
A framework for:
o benchmarking building performance
o encouraging integrated building design & construction
o raising awareness of „GB‟ benefits
o meeting legal obligations
o attaining resource security
o 3rd party verification of environmental credentials
2. GB rating tools VS regulation
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2. GB Rating Tools VS regulation
GB rating tools in Asia
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3- GB development triggers
and obstacles
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3- GB development triggers and obstacles
Main triggers worldwide Main obstacles worldwide
Source: World green building trend 2016 (WGBC) – Dogde Data & Analytics
In Vietnam
Industry:
• Wrong perception of GB cost premium
• Lack of technical/management skills
• Scarce “green” products
• Highly speculative market
Government
• Insufficient regulation & law enforcement
• Insufficient guidance & lack of incentives
• Highly subsidised energy cost
Users:
• Lack of clear demand from end users
3- GB development triggers and obstacles
What drives green initiatives in Vietnam?
• MNC corporate guidelines
• Financial long term benefits of investors/operators
• Sales and marketing considerations
• Implementation of more stringent EE and environmental codes
• Increasing awareness of global environmental issues
3- GB development triggers and obstacles
Country Rating Tool Certified projects
Registered Projects
Singapore Green Mark >2500 -
Malaysia GBI 327 650
Indonesia Greenship 14 50
Thailand TREES ? 60
Philippines Berde 50 ?
GB development in South East Asia
A growing interest and substantial development since 2009. Mainly through voluntary systems run by non for profit organisations. This global momentum has been coordinated through the World GBC platform. Only in Singapore and China, government has been leading GB development. Recently IFC introduced EDGE, a resources efficiency tool, to address social housing and other lower end construction segments.
3- GB development triggers and obstacles
UDENRIGSMINISTERIET, MINISTRY OF FOREIGN AFFAIRS OF DENMARK
Rating Tool Certified projects
Registered Projects
LOTUS 10 7
LEED 16 25
Green Mark 2 -
EDGE* (* Resource Efficiency)
6 2
GB development in Vietnam
3- GB development triggers and obstacles
GB development in Vietnam
Source Solidiance –VGBC 2013
3- GB development triggers and obstacles
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4- Financial aspects of GB
Life Cycle Cost analysis
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Viewed over a 30 year period: Initial building costs account for approximately just 2% of the total, while operations and maintenance costs equal 6%, and personnel costs equal 92%. O&M costs = 2 X cumulated design and construction costs. This clearly illustrates the importance of planning and running operations at an optimised level.
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4- Financial aspects of GB
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4- Financial aspects of GB
Design change and cost implications
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4- Financial aspects of GB
- Benefits consistent over the globe
- Payback periods vary
depending on countries - Shorter payback time in
developing countries (max 5 years)
Source: World green building trend 2016 (WGBC) – Dogde Data & Analytics
Financial benefits
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4- Financial aspects of GB
What added costs?
1. Consultants / specialist costs – 25 to 200K USD
2. Certification fees – 4.5 to 30K USD
3. Extra documentation
4. Technical choices depending on projects:
Extra metering High COP HVAC equipment Improved glazing Efficient lighting Extra ventilation Water saving fixtures Alternative energy Commissioning Etc.
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4- Financial aspects of GB
Projects premium costs worldwide
Source: WGBC, USGBC, BCA, Green Consult Asia
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4- Financial aspects of GB
Payback time calculated only with energy cost savings
Projects premium costs in Vietnam
Source: Green Consult Asia
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4- Financial aspects of GB
CASE STUDY 1 : VM MOC BAI FACTORY AND OFFICE
Location: Moc Bai, Tay Ninh. GFA: 72,000+ 9800 m2
Certification targets: Prove sustainability credential to NIKE, Improve work place to reduce churn
Certification: Each building achieved LOTUS certified and LEED Silver
Challenges: Unresponsive designer and contractor
Extra costs: 2% over construction costs: • Increased WWTP capacity and standards • Improved landscaping design • Improved daylight and artificial light • Improved ventilation and accessibility • Added solar water heater
Payback: 2.5 years at today‟s rate • Energy cost savings: USD 118,000 p.a. • Water cost savings: USD 47,000 p.a.
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4- Financial aspects of GB
CASE STUDY 2 : POUCHEN KINDERGARDEN
Location: Binh Duong GFA: 3800m2
Certification targets: “Pou Chen sustainability roadmap” ...the biggest employer in VN
Certification: LOTUS Silver
Challenges: Poor documentation skills of design team
Extra costs: 1.8% over construction costs ($93,100 USD) • Added energy and water meters • Improved artificial lighting & AC • Improved disabled access • Water flow reducers • Administrative costs
Payback: 8.5 years at today‟s rate (because of very low annual running costs) • Energy cost saving: between $6,800 & $7,800 USD/annum • Water cost saving: $3,627 per annum
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4- Financial aspects of GB
CASE STUDY 3 : EXIMBANK
Location: HCMC
Certification: LEED GOLD (under going)
Challenges: Unreasonable design assumption
Extra costs: QS pre-FS cost prediction of 3% - Current estimate 0.5% Rainwater recycling toilets and irrigation (50% of water is recycled) Glazing cost increase of 0-4% CO2 monitors to 4 meeting rooms Chiller sizing saving of 10% Payback: Payback 5-8 years (at today‟s electricity & water rates) Annual cost saving of $6,800. Energy saving increased from 4% to 34% Projected operational savings of $26,700 annually Predicted water saving of 37% internally and 100% externally
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CONCLUSION
4- Financial aspects of GB
Building Developers/Owners: • Think long term • Start as early as possible • Set realistic targets • Insure appropriate operations
management to harness benefits Government:
• Set EE and environmental legislation, targets and trainings
• Define and implement incentive policies • Develop pilot projects with public
buildings Construction industry:
• Develop EE/ GB design skills • Develop financial skills
UDENRIGSMINISTERIET, MINISTRY OF FOREIGN AFFAIRS OF DENMARK
Thank you for your attention!
Yannick Millet Energy Efficiency and Green Building specialist
VGBC Executive Board Member EDGE IFC – Technical Advisory Board Member
”The journey of a thousand miles begins with one step”
-Lao Tzu-