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Green Building – Overview & Emerging
Opportunities
November 2011
Vidhi Yaduvanshi
Environmental & Building Technologies
Frost & Sullivan
Malaysia
2
Table of Contents
2
3
4
5
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?
3
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
4
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
2
3
4
6
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?
7 What are the emerging Opportunities?
1 What is the Current Scenario?
6
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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Contents
2
3
4
5
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?
8
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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Contents
2
3
4
5
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?
12
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.
13
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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Contents
2
3
4
5
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?
15
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
16
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
2
3
4
5
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?
19
Emerging Opportunities – Major Themes
Top 10 Themes in Green & Smart Buildings
20
Top 10 Technologies in Green & Smart Buildings
Emerging Opportunities – Major Technologies
21
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