Chief Industry Specialist CASE FOR GREEN BUILDINGS IFC‐World …€¦ · EDGE: A BUILDING DESIGN TOOL THEEDGE SOFTWARE _____ Local utility costs and climate data ... WHICH OF THESE

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.


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.”


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 PROGRAM_______

25 MIN.

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?

_______

EDGEEXCELLENCE IN DESIGN FOR GREATER EFFICIENCIES

_______

20%

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.

GREEN DESIGN CONCEPTS_______

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

5 EASY STEPS TO CERTIFICATION_______

EDGE GREEN BUILDING CERTIFICATIONPROJECT CERTIFICATE

EACH CERTIFIED PROJECT RECEIVES A PROJECT STUDY.

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

WHAT IS THE BUSINESS CASE FOR GREEN BUILDINGS?

______

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


34% Less EnergyIn Materials


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


71% Less Energy In Materials


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




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




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

THANK YOU._______

www.edgebuildings.com

Documents

Chief Industry Specialist CASE FOR GREEN BUILDINGS IFC‐World …€¦ · EDGE: A BUILDING DESIGN TOOL THEEDGE SOFTWARE _____ Local utility costs and climate data ... WHICH OF THESE