Posts

Cities Seek US$1 Trillion for Low-Carbon Construction

C40ForumWomen

Women at the C40 Financing Sustainable Cities Forum, from left: Naoko Ishii, CEO and chairperson of the Global Environment Facility; Sue Tindal, chief financial officer at Auckland Council; Val Smith, director, Corporate Sustainability at Citi; Shirley Rodrigues, Deputy Mayor of London for Environment and Energy.

By Sunny Lewis

LONDON, UK, April 12, 2017 (Maximpact.com News) – The world’s largest cities are not sitting around waiting for national governments to hand them a climate-safe future. They are taking the initiative to build their own low-carbon opportunities.

To address climate change arising from urban development, there are over 3,000 low-carbon infrastructure projects in the planning stages across a network of 90 of the world’s megacities known as C40 Cities .

Cities have reported costs for just 15 percent of these projects, but even this small percentage amounts to US$15.5 billion in required investment.

There are 90 megacities in the C40 Cities network. They include: Durban, Nairobi, Lagos, and Addis Ababa in Africa; Delhi, Hong Kong, Bangkok, and Tokyo, in Asia; Auckland, New Zealand in Oceana; Amman, Jordan in the Middle East; Copenhagen, Paris, Rome, London, Berlin, Athens and Amsterdam in Europe; Bogota, Rio de Janeiro, Sao Paulo, and Buenos Aires in South America; and in North America, Houston, New York, San Francisco, Washington, DC, and Vancouver.

Roughly one in every 12 people in the world lives in a C40 city, and these 90 cities generate about one-quarter of the world’s wealth, as expressed by GDP, or Gross Domestic Product.

These numbers highlight an enormous opportunity for collaboration between cities and the private sector to invest in sustainable projects, and also the need to accelerate investment and development in sustainable infrastructure to deliver a climate-safe future.

Rachel Kyte, chief executive, Sustainable Energy for All, an initiative of the United Nations Secretary-General, has said, “Buildings account for one-third of global energy use and with cities growing rapidly, there’s an urgent need for partnerships that help cities and citizens use energy better.”

Recent C40 research, contained in the report “Deadline 2020,” estimates that C40 cities need to spend US$375 billion over the next four years on low carbon infrastructure in order to be on the right track to meet the ambition of the Paris Agreement on Climate that took effect in November 2016.

Under this agreement, world governments pledged to keep Earth’s temperature increase to less than two degrees Celsius above pre-industrial levels.

Deadline 2020” estimates before 2050, C40 cities will need to invest over US$1 trillion on new climate action and in renewing and expanding infrastructure to get on the trajectory required to meet the goal of the Paris Agreement.

But how are the megacities to attract this mega-investment?

On April 4, the C40 Financing Sustainable Cities Forum gathered over 200 delegates from cities, investors, national governments, academics, private sector experts, civil society groups and technology providers to identify the key barriers in financing sustainable urban infrastructure.

The Forum was hosted in London by the C40 Cities Climate Leadership Group and the Greater London Authority, with the support of the Citi Foundation and World Resources Institute’s Ross Center for Sustainable Cities.

City action can deliver 40 percent of the Paris goal,” Mark Watts, executive director, C40 Cities, said at the Forum.

Participants looked at unlocking finance for low-carbon investments in cities. They agreed that cities must improve project development information in order to accelerate climate action, a conclusion articulated in a new report, “The Low Carbon Investment Landscape in C40 Cities.

They recognized that accessing and attracting finance are some of the biggest barriers that mayors face in delivering their climate change plans, especially in developing countries and emerging economies with a lack of expertise in securing investment.

To help solve this problem, the C40 Cities Finance Facility was launched during COP21, the 2015 United Nations Climate Change Conference in Paris, where the Paris Agreement on Climate was approved by world governments.

The C40 Cities Finance Facility will provide US$20 million of support by 2020 to help unlock and access up to US$1 billion of additional capital funding, by providing the connections, advice and legal and financial support to enable C40 cities in developing and emerging countries to develop more financeable projects.

For developing markets, public-private partnerships are key to getting sustainable projects off the ground,” said Val Smith, director, Corporate Sustainability at Citi.

But the financial industry tells C40 Cities that they are experiencing a lack of corporate understanding of the low carbon technology being deployed.

They lack understanding of the financing models cities use to fund low carbon infrastructure and, in addition, financiers are seeing inadequate capacity within city governments to form partnerships and collaborate on sustainable infrastructure projects.

CDP’s Matchmaker program aims to overcome these challenges by engaging cities early in the project development process and standardizing how these projects are disseminated to the market.

CDP, formerly the Carbon Disclosure Project, is a not-for-profit that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

Since the Paris Agreement was adopted in 2015, CDP says they have seen a 70 percent increase in cities disclosing their carbon emissions.

CDP says this year’s disclosures reveal that many cities are actively looking to partner with the private sector on climate change. Cities highlighted a total 720 climate change-related projects, worth a combined US$26 billion, that they want to work with business on.

Matchmaker will publicize these low-carbon infrastructure projects to CDP’s growing number of investor signatories that currently represent over US$100 trillion in assets.

And these are by no means all of the opportunities for sustainable investment in urban low-carbon construction.

On April 4, at a meeting of the Sustainable Energy for All Forum in New York City April 3, five new cities and districts committed to improve their buildings by adopting new policies, demonstration projects and tracking progress against their goals.

They joined the Building Efficiency Accelerator (BEA), a public-private collaboration that now includes over 35 global organizations and 28 cities in 18 countries.

The cities and districts joining the BEA are Kisii County, Kenya; Merida, Mexico; Nairobi City County, Kenya; Pasig City, Philippines; and Ulaanbaatar, Mongolia.

World Resources Institute (WRI) leads the BEA, convening businesses, nonprofits and multilateral development organizations to support local governments in implementing policies and programs that make their buildings more efficient.

Jennifer Layke, global director, Energy Program, World Resources Institute, encapsulated the push for sustainable construction, saying, “People want schools, homes, and offices that are healthy and comfortable without the burden of high energy costs due to inefficiency. Prioritizing efficiency in buildings can save money and reduce pollution. Our new Building Efficiency Accelerator partners are signaling their intent to avoid the lock-in of decades of inefficient development.

Supporting these new members are ICLEI – Local Governments for Sustainability, the India Green Building Council, the Kenya Green Building Society, Pasig and WRI Mexico.

We must transform our urban systems to meet the challenges of sustainability and climate,” said Naoko Ishii, CEO and Chairperson of the Global Environment Facility, a funding organization. “Through this partnership, we can provide awareness raising, policy advice and technology transfer directly to sub-national governments ready to take action.”

Follow C40 Cities on Twitter


Featured Image: Duke Energy Center in Charlotte, North Carolina is a LEED Certified Platinum building, the highest sustainability rating awarded by the U.S. Green Building Council. (Photo by U.S. Green Building Council) Posted for media use

Billboard- 970x250-min-min

Create sustainable construction  projects through Maximpact’s Advisory and discover project services for all types of business and organizations.  Find a sustainable construction expert for your projects through Maximpact consulting network.  Contact us at info(@)maximpact.com and tell us what you need.

Building in Many Shades of Green

Building_in_Many_Shades_of_Green

LEED Platinum Certified airlines office building, Schiphol, Haarlemmermeer, North Holland, the Netherlands, November 2015 (Photo by Jeroen P.M. Meijer) Creative commons license via Flickr

 

By Sunny Lewis

BRUSSELS, Belgium, March 22, 2016 (Maximpact.com News) – “When you ask me, ‘what is a green building?’ I don’t have a very good answer,” confesses Josefina Lindblom, European Commission Policy Adviser on resource efficiency in the building sector.

Speaking in the second episode of the “Construction Climate Talks” series released on YouTube March 15, Lindblom says, “The building sector is one of the biggest resource users in our society. It uses about 50 percent of our extracted materials and more than 50 percent of our energy. A third of our water use goes to buildings, and more than a third of our waste is construction and demolition waste.”

“A wider approach to the use of buildings is necessary,” says Lindblom. Not only extraction and production of materials, to construction and use of the building, she says, “but also the end of life phase and what happens then.”

The web video series is a project of the Construction Climate Challenge Initiative, hosted by Volvo Construction Equipment.

“We want to promote sustainability throughout the entire construction industry,“ says Niklas Nillroth, vice president, environment and sustainability at Volvo CE. “We are hopeful that our film series will work as a contributing factor in the matter of making people aware and to enhance cross-sector collaboration throughout the construction industry value chain.”

In November 2015, Construction Climate Talks premiered with the first episode, three minutes featuring Professor Johan Rockström. Executive director of the Stockholm Resilience Centre, he teaches natural resource management at Stockholm University.

“If we continue with business as usual,” says Rockström on camera, “even a conservative assessment concludes that we are on an average pathway towards a four degree Celsius warming by the end of this century. We would have sea levels irreversibly moving beyond one meter of height, we would have new kinds of pandemics, heat waves, disruptions such as droughts and floods. Unless we have a good, stable planet, everything else would be unachievable anyway.”

But some still have “an obsolete, erroneous logic” that sustainability could threaten the economy,” he said. “Nothing could be more wrong.”

Even though many people still resist change, Rockström is optimistic that “the grand majority” sees that “sustainability is a vehicle for success, not an impediment to success.”

“We should move with the coalitions of the willing,” says Rockström, “and show by doing that this is actually something that benefits business, gets better profit, gets better reputation and is even more attractive.”

While energy use is only part of the green building equation, it’s an important part.

Across the European Union, energy efficiency regulation for greener commercial buildings is fast approaching, in line with the terms of the Paris Climate Agreement reached by 195 governments at the annual United Nations climate conference in December.

“A decree in France is expected in June for commercial buildings. They will be required to reduce their energy use by 25 percent by 2020. No question that most of European countries will follow in the coming years,” wrote Siham Ghalem-Tani, executive assistant and partnership relations officer with the French Institute for Building Efficiency (IFPEB) on March 14. This business-led coalition is intended to implement “an ambitious and efficient energy and environmental transition” in the European real estate and building sectors.

The European energy competition CUBE 2020, now in its third year, is serving as a catalyst for tenants of commercial buildings to meet the EU’s energy reduction objectives. This year, the 123 candidates, located in France, Belgium and Luxembourg, are on track for an expected outcome of 10 percent energy savings from July 2015 to July 2016.

Julien Cottin, manager of the Energy and Environmental Studies Centre of the Bordeaux metropolitan area, said, “Prior to our registration of four buildings in the CUBE 2020 competition, we had prioritized major works on our buildings, such as thermal renovation operations or improving energy efficiency. Our participation afforded us an opportunity to look at the uses of buildings and to adopt a new mindset.”

Cottin said, “The ‘competition’ aspect to CUBE 2020 provides a real dynamic for working on the behavior of the users of a building. The results are conclusive and motivating!”

Green building standards are becoming increasingly important to investors.

GreenUSArmyWorker

Worker installs siding during construction of environmentally-friendly green barracks on Fort Eustis, Virginia, USA. All new construction in the Department of Defense must qualify for Silver certification under the U.S. Green Building Council’s Leadership in Energy and Environmental Design standard, 2009. (U.S. Army Environmental Command photo by Neal Snyder) public domain.

Last week, the Global Real Estate Sustainability Benchmark (GRESB) survey, the first global effort to assess the environmental and social performance of the global property sector, announced the launch of a Health and Well-being Module.

This optional supplement to the GRESB annual survey for institutional investors evaluates and benchmarks actions by property companies and funds to promote the health and well-being of employees, tenants and customers. It features 10 new indicators, including: leadership, needs assessment, implementation and performance monitoring.

“The design, construction and operation of our built environment has a profound impact on individuals and populations,” said Chris Pyke, chief operating officer with GRESB, which has offices in Washington, Amsterdam and Singapore.

The GRESB Health and Well-being Module is now available in pre-release on the GRESB website and will be open for submission starting April 1.

“The GRESB Health and Well-being Module will make real estate companies and funds more transparent and make comparative information more accessible and actionable for investors. This represents an important step toward resolving long-standing market failures and making health an investible attribute of real estate,” says Dr. Matt Trowbridge, associate professor, associate research director, Department of Public Health, University of Virginia School of Medicine.

In the United States, green buildings abound, encouraged by the nonprofit U.S. Green Building Council, co-founded by current CEO Rick Fedrizzi and partners in 1993. Fedrizzi also sits on the GRESB Board.

The U.S. Green Building Council pioneered the Leadership in Energy and Environmental Design (LEED) green building certification program, now used worldwide.

LEED offers four certification levels for new construction: Certified, Silver, Gold and Platinum. These correspond to the number of credits achieved in five green design categories: sustainable sites, water efficiency, energy and atmosphere, materials and resources and indoor environmental quality.

In addition to its many other activities, the U.S. Green Building Council is a contributing partner to the Dodge Data & Analytics World Green Building Trends 2016 SmartMarket Report.

Released in February, the SmartMarket Report, covers nearly 70 countries. It shows that global green building continues to double every three years.

New commercial construction was the top sector for expected green building projects in Mexico, Brazil, Colombia, Germany, Poland, Saudi Arabia, China and India.

The United States shared the lowest expected levels of green commercial building with Australia.

Still, 46 percent of U.S. respondents indicated they expected to embark on new institutional green projects in the next three years.

Across all regions, many survey respondents forecast that more than 60 percent of their projects will be green by 2018.

“International demand for green building, due in great part to the LEED green building program’s global popularity, has grown steadily over the years,” said Fedrizzi.

“Countries are looking for tools that support stable and sustainable economic growth. International business leaders and policymakers recognize that a commitment to transforming the built environment is crucial to addressing major environmental challenges,” he said.

The SmartMarket report shows that increasing consumer demand has pushed the world’s green building market to a trillion-dollar industry, a surge that has led to a parallel increase in the scope and size of the green building materials market, now expected to reach $234 billion by 2019.

It appears that the European Commission’s Lindblom is going to get the “wider approach” to green building she has been seeking.


Featured image: BMW Head Office, Midrand, Johannesburg, South Africa. Designed by Hans Hallen, the building has recently been refurbished and modernized, implementing green principles. Thermal comfort and energy efficiency were addressed with lighting, ventilation, hot water supply and back-up solutions which required the construction of a satellite Energy Centre. The building achieved a 5-star As Built Green Star South Africa rating, December 2015. (Photo by Colt Group) Creative Commons license via Flickr.