HOW TO BUILD THE BUSINESS CASE FOR GREEN BUILDINGS
WITH EDGE
Prashant KapoorChief Industry SpecialistIFC‐World Bank Group
@Prashant_kapoor
wifi network: radission guest
Create EDGE account from: www.edgebuildings.com(no need to download software, it is internet interface)
SESSION DESCRIPTION_______
SESSION 2• Instructions for EDGE Software practical
exercise 25 Min.
SESSION 4 • Discussion and next steps 10 Min.
• Business Case for Green Buildings using EDGE
• Orientation and Overview
• EDGE program
• Green Design Concepts? 45 Min.
40 Min.
SESSION 1
SESSION 3
Outlook to 2035:• Energy consumption will grow by 37%• 96% of growth will occur in developing countries
http://www.iea.org/
THE NEED FOR GREEN BUILDINGSBACKGROUND: GLOBAL ENERGY
By 2025, 1.8 billion people will be living in countries or regions with absolutewater scarcity, and two‐thirds of the world’s population could live under
water stress conditions.
Global water consumption has grown at more than twice the rate of population increase in the last century.In developing countries this will increase by another 50% by 2025.
http://www.unwater.org/publications/publications‐detail/en/c/204294
THE NEED FOR GREEN BUILDINGSBACKGROUND: GLOBAL ENERGY
THE NEED FOR GREEN BUILDINGSBACKGROUND: GLOBAL MATERIALS
IRON AND STEEL MANUFACTURING
global CO2 emissions
ALUMINIUM MANUFACTURING
Global electricity use
CEMENT PRODUCTIONglobal CO2 emissions
11%
5‐7%
5%
THE NEED FOR GREEN BUILDINGSBACKGROUND: GLOBAL MATERIALS
25%
70%
75%
35%
65%
65%
21%
38%
0% 50% 100%
Aluminum
Bricks
Concrete
Copper
Glass
Aggregate
Steel
Wood
% MATERIALS USED IN THE BUILDINGS
Used in Buildings Other Uses
THE NEED FOR GREEN BUILDINGSGROWING DEMAND FOR BUILDINGS
There will be a 100% increase in the population of developing countries by 2050.Emerging markets are in the midst of a construction boom.
Cities are under resource constraints .
• China will see 250 million people move to cities.• India will double its buildings stock • Africa’s urban growth rate (3.7%) is twice the global • African urban populations will triple, to 1.2B
A dynamic effort can transform the market by bringing together corporations, governments, developers, banks, building professionals, and occupants.
WE HAVE A WINDOW OF OPPORTUNITY TO SHAPE OUR
BUILT ENVIRONMENT
THE NEED FOR GREEN BUILDINGS_______
Greening construction offers a chance to secure emission cuts at a low cost.
If the right investment choices are not made
today, we will be bound to high‐energy urban
infrastructure for decades.
THE NEED FOR GREEN BUILDINGS_______
Home Owners
Builders
Developers
Investors
Value creation among all market
players.
“We would fund efficient
buildings, but there is no demand for
them.”
“We would ask for energy‐
efficient homes, but investors won’t finance
them.”
“We can build energy‐efficient homes, but developers don’t ask for
them.”
“We would like lower utility bills but there aren’t any efficient homes.”
THE NEED FOR GREEN BUILDINGS_______
BANKSBUILDERS
Portland: 8% more
Seattle: 9% more
Singapore: 4% more
US: 15% less US: 33% less
UK: +10%‐14%
Netherlands: +3.7%
California: +8.7%
Switzerland: +.5%‐ 7%
Portland: ‐18 days
Seattle: 4 times faster
Higher Resale Value
Lower Default Rates
Quicker Sale
Lower Utility Bills
Higher Sales Price
BUYERS
BENEFITS OF GREEN BUILDINGSTHE COMMERCIAL VALUE OF GREEN
EDGE: THE VISIONHOW EDGE CAN CATALYZE THE MARKET
_______
20% of all new construction in target markets to be green in
7 years.
FMA2F
Government regulations
Supporting financial products
EDGE certification system
Investing in buildings and technologies
Recognizing that this approach was missing, IFC created EDGE.
A metrics‐driven, scalable voluntary standard was needed to align the interests of market players, prove the case for building green, and reward innovative design.
WHAT WILL IT TAKE TO MAINSTREAM GREEN BUILDINGSIN ORDER TO HELP TACKLE CLIMATE CHANGE?
_______
EDGE: A BUILDING DESIGN TOOLTHE EDGE SOFTWARE
_______
Local utility costs and climate data Design‐specific results from building physics calculations
Design guidance on multiple technical measuresInvestment planning for building owners
EDGE: A GREEN BUILDING STANDARDADDRESSES NATIONAL PRIORITIES
_______
• Consistent assessment of building performance against a local benchmark• Support for designers to achieve greener buildings with contextual data.• A robust basis for developers to measure and improve investment portfolios.
WALL INSULATION50mm thick polystyrene
EXTERNAL SHADINGHorizontal shading depth 50% of
window
REDUCE WINDOW AREAFrom 55% to 30%
WHICH OF THESE IS GREENEST MEASURE?FOR A HOTEL IN DOUALA, CAMEROON
?
?
?
WALL INSULATION50mm thick polystyrene
EXTERNAL SHADINGHorizontal shading depth 50% of
window
REDUCE WINDOW AREAFrom 55% to 30%
1%
4%
6%
WHICH OF THESE IS GREENEST MEASURE?FOR A HOTEL IN DOUALA, CAMEROON
Concrete blocks including insulation
Clay Brickincluding insulation
Stainless steel cladding including insulation
?
?
?
WHICH OF THESE WALLING MATERIAL IS THE GREENEST?
- Low embodied energy- Potential to use recycled agg
& cement substitutes
- High embodied energy/CO2
- Low quantity of material required- 95% steel with recycled content
1
3
2
WHICH OF THESE WALLING MATERIAL IS THE GREENEST?
LIFECYCLE ENERGY IMPACT_____
Impact of a typical office buildingover 25 years in India
Source: IFC’s EDGE
THE PRINCIPLE RULE FOR ENERGY EFFICIENCY_____
Reduce demand/passive design – Architecture
Meet end use demand efficiently – Building Services
Renewable decentralized sources – On‐site Renewables
Centralized renewable energy sources – Off‐site
Conventional energy sources – Grid, gas, etc.
Orientation
Shading
Natural Ventilation
Insulation
Window to Wall Ratio
Materials and Color
PASSIVE DESIGN FOR ENERGY EFFICIENCY
Bruck Passive House Hotel, EDGE Certified, 2015
Building Systems
Lighting
Air Conditioning (Cooling)
Heating
CHP
Lifts and Escalators
Hot Water
Metering
Small Power – Appliances
EFFICIENT AND LOW CARBON SYSTEMS
Kaufland – Hristo Smimenski, EDGE‐certified retail project in Bulgaria (2015)
Low Carbon and Renewable Energy Technologies
Combined Heat and Power
Solar Thermal Panels
Photovoltaic Panels
Solar Cooling
Biomass & Biofuel
Ground Source Heat Pumps
Air Source Heat Pumps
WATER EFFICIENCY
Low‐flow Plumbing Fixture
Aerators and Auto Shut‐off Faucets
Rainwater Harvesting System
Efficient Water Closets
Grey Water Treatment and Recycling System
Black Water Treatment and Recycling System
Water‐efficient Landscaping
Condensate Water Recovery
Abhikalpan Office, EDGE‐certified office project in India (2016)
City Express Hotel‐Santa Fe, Preliminary EDGE Certificate in Mexico (2012)
DEFINING GREEN DESIGNLOW EE MATERIALS
Reduce quantity
Substitute high‐energy materials
Find alternatives with low embodied energy
SOFTWARE DEMO_____
www.edgebuildings.com
Click https://www.youtube.com/watch?v=GL4I7EC_pzw for a demo
20%
EDGE: A GREEN BUILDING STANDARDCLEAR, ACHIEVABLE TARGETS.
_______
ENERGY USE WATER USE
‘A building that has 20% less energy, water and material consumption compared to an equivalent local benchmark.’
The standard provides a performance assurance to buyers and investors.
EMBODIED ENERGY IN MATERIALS
20% 20%
EDGE CERTIFICATION PROCESSPROJECT CYCLE
_____
The Certifier provides an initial Preliminary Certificate and a final, post‐construction EDGE Certificate to the client. There is no EDGE certificate for building operation.
OperationConstructionDesign
Use of EDGE software for
design changes
Preliminary Certificate
EDGE Certification
Use of EDGE software for construction
changes
Register
EDGE website
EDGE IS DIFFERENT FROM OTHER CERTIFICATION SYSTEMS_______
FINANCIAL CALCULATOR No other certification system has free software to calculate the cost of going green.
QUANTITATIVE APPROACH EDGE uses projected performance for a uniquely measurable approach.
ONE‐STOP SHOP Efficiency simulations are executed in EDGE and the entire certification process can be conducted within the software.
PROJECT INTEGRATION Certification compliance can be achieved with invoices, photos and a few architectural drawings.
LOCATION‐SPECIFIC EDGE has climate and lifestyle data for the most accurate results.
GREEN BUILDINGS FOR ALL Fast and affordable, EDGE makes certification available for everyone.
EDGE CERTIFICATION PROCESSPROJECT TEAM ROLES
EDGE application is prepared by the Project Admin (client), verified by an
the EDGE Auditor and certified by the EDGE certifier.
EDGE client/EDGE
Expert
EDGE Auditor
EDGE CERTIFIER
Design team
Construction team
EDGE Certifier
EDGE GREEN BUILDING CERTIFICATIONDEMONSTRATING COMPLIANCE
_______
Confidence in certification is due to: Continual improvement and monitoring of the EDGE software Expert and Auditor technical understanding and training
Quality assurance processes
GREEN BUILDINGS HAVE A STRONG BUSINESS CASE________
40
MINIMIZE COSTS• Incorporate green early into design and keep costs to 1‐3% extra at most.• Most passive green measures cost nothing and can even improve
construction for net positive benefit.
QUICKER SALE OR RENTAL• IFC’s clients are using green to differentiate their offering in the market.• Data shows quicker sales.
HIGHER PRICE• Home buyers are willing to pay more for efficient homes with lower bills. • Green mortgages can minimize upfront cost to buyer.
LOWER DEFAULT RATE• IFC can connect home buyers to green mortgages to create synergies with
financiers, who will enjoy stronger portfolios.
INCENTIVES• Projects can enjoy local incentive schemes for sustainability.• Raise funds on international markets quicker or cheaper under green brand.
MANAGING OPERATING COST IS CRUCIAL FOR SURVIVAL
See 1 minute interview with Ashish Jakhanwala, CEO SAMHI Hotelshttps://www.youtube.com/watch?v=nXxl5oPgMJw
The CEO of SAMHI, a privately owned hotel asset company in India, provides the business case for why hotel investors and owners should consider green building certification with EDGE.
SAMHI's Fairfield by Marriott located in Bangalore is EDGE certified..
A MEXICO HOTEL ACHIEVED 51% LOWER ENERGY BILL WITH PAYBACK IN JUST 8 MONTHS
_______CASE STUDYCity Express Hotel Santa Fe135 Guest RoomsMexico City, MexicoFinal EDGE Certification: November 2012http://edgebuildings.com/portfolio‐item/city‐express‐hotels/
Incremental Cost of Green Measures:
US $56,209 51% Lower Energy Bill
32% Lower Water Bill
44% Less EnergyIn Materials
Savings Impact of Green Measures:
Payback in Years:
0.6
Select Green Measures:
• Low‐E coated glass• Dual flush water closets• External shading devices• Energy‐efficient lighting• Air conditioning with
water cooled chiller• Finished concrete
flooringUtility Cost Reduction:
US $7,500/month
GREEN BRAND MEANS GROWING CUSTOMER BASE_______
CASE STUDYBruck Passive House Hotel46 Guest RoomsShanghai, ChinaFinal EDGE Certification: October 2015http://edgebuildings.com/portfolio‐item/bruck‐passive‐house‐hotel/
Incremental Cost of Green Measures:
US $44,276 47% Lower Energy Bill
42% Lower Water Bill
34% Less EnergyIn Materials
Savings Impact of Green Measures:
Payback in Years:
0.9
Select Green Measures:
• Energy‐saving lighting system
• Dual flush water closets• External shading devices• Higher thermal
performance glass• Rainwater harvesting
systemUtility Cost Reduction:
US $4,130/month������������ �
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“GREEN” DIFFERENTIATION MEASURES ARE BEING EMPLOYED BY DEVELOPERS
Developers especially in the low income and affordable housing space are the most keen users of “maintenance cost” differentiation.
The EDGE certified Kesar City project in India is a case‐in‐point –it achieved 80% savings in maintenance over benchmark costs.
Lower maintenance and utility costs
Kesar was the fastest to sell among 14 projects which went to market in 2015 in the Maraiya region despite being the largest. Several projects in the vicinity remain unsold.
Actual saving per measure (INR) 23% Lower Energy Bill
24% Lower Water Bill
71% Less Energy In Materials
Savings Impact of Green Measures:
CASE STUDYKesar City, Indiahttps://www.edgebuildings.com/projects/kesar‐city//
In Philippines, Imperial Home’s Via Verde is a solar powered community of 1,000 houses.
Imperial Homes install 500 watts roof top solar PV panels with every on every unit for free to allow buyers to enjoy lower electricity rate through the PV lease‐back program.
NEW BUSINESS MODELS ARE HELPING ALIGNMENT OF SPLIT INCENTIVES
CASE STUDYVia Verde, Philippineshttps://www.edgebuildings.com/projects/imperial‐homes/
32% Lower Energy Bill
28% Lower Water Bill
38% Less Energy In Materials
Savings Impact of Green Measures:
NEW BUSINESS MODELS ARE HELPING ALIGNMENT OF SPLIT INCENTIVES IN
VBHC’s EDGE homes costed 2% more By reducing construction duration by 66% they have in lowering working capital requirements.
Concrete formwork technology allows rapid construction and also has lower embodied impact than bricks
The improving cash‐cycle more than makes up the incremental capital cost green features.
Shambhu ST with his family at his VBHC flat. The 35‐year‐old’s compact, two‐bedroom apartment on the outskirts of Bangalore bought the flat for Rs.11 lakh (US$17,000).
33% Lower Energy Bill
39% Lower Water Bill
23% Less Energy In Materials
Savings Impact of Green Measures:
CASE STUDYVaibhava, Indiahttps://www.edgebuildings.com/projects/vbhc/
HELP YOUR CUSTOMERS LOWER UTILITY BILLS
See 1 minute interview with Hendri Swart of SSI Grouphttps://www.youtube.com/watch?v=FX6fx2VdQj8
Hendri Swart is the Marketing Director of SSI Group, a developer of affordable homes in South Africa that has incorporated solar panels, smaller windows, and natural ventilation among other solutions to reduce energy and water usage for customers. His message to other developers is it makes sense to help your customers achieve lower utility bills by designing and certifying your projects with EDGE.
For more info on Waterfall Park click the link belowhttps://www.edgebuildings.com/projects/waterfall-park/
DEVELOPERS USE EDGE TO DIFFERENTIATE
BANKS TARGET GB MARKET WITH NEW PRODUCTS
OWNERS RECOGNIZE OPERATING BENEFITS
GOVERNMENT OFFER ENABLING ENVIRONMENT
WHAT WILL SUCCESS LOOK LIKE?
EDGE Expert Training
June 14, 2018 | Nairobi$300 Kenya GBS Members | $400 General Publicgoo.gl/coUHCD
HOW TO BECOME AN EDGE EXPERTPREQUALIFICATION
Training Prequalification Exam and Approval
Architect
Architectural
Technologist
Bid Manager
Building Surveyor
CAD Technician
Civil Engineer
Contracts Manager
Contractor
Construction Manager
Developer
Electrical Engineer
Estimator
Energy/Environmental
Engineer
Facilities Manager
Mechanical Engineer
Planner
Procurement & Contracts
Manager
Quantity Surveyor
Site Engineer
Site Manager
Skilled Tradesperson
Structural Engineer
Acceptable construction industry roles:
HOW TO BECOME AN EDGE AUDITORPROCESS_____
EDGE Expert Auditor Training with certifier
Signing Auditor
agreement Maintaining Quality
Control
• As an EDGE Expert you can take the EDGE Auditor training with local or global certifiers
• Note that in certain countries where there is a local certification provider you must be trained by a local certifier
• Sign the auditor agreement• Maintain your credentials
IFC’S RESOURCES FOR MARKETING________
VIDEO ON YOUTUBE 4‐Minute Intro Video 60‐Second Commercial EDGE Demo in English EDGE Demo in Spanish EDGE Demo for Architects
SOCIAL MEDIA Facebook Twitter LinkedIn Google+
EDGE BROCHURE Available in Bahasa
Indonesian, Chinese, English, Spanish, Turkish, and Vietnamese
English Versions for Indiaand the Philippines
EDGE WEBSITE Certification Info Green Tips Project Studies News Marketing
Presentation