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Stimulus programme for green buildings
2020-09-23 | GlobalABC Work Area Finance/ Programme for Energy Efficiency in Buildings (PEEB)
Stimulus programmes for green buildings – best practice examples

Green buildings vs. the crisis

Stimulus programmes for green buildings – best practice examples

 

Green building stimulus programmes can boost a Green Recovery after Covid-19.

Please find the recording of our webinar here.

The construction sector is essential for an economic recovery after the COVID-19 crisis. It can rapidly create large amounts of jobs and involves far-reaching value chains of small and large businesses. At the same time, the building sector presents a massive – and largely unused – opportunity to respond to the climate crisis. The building sector holds the potential for a double win: For small extra investments, green buildings can achieve massive long-term savings of cost and greenhouse gas (GHG) emissions. Governments successfully used green building programmes to help recover from the 2008 financial crisis.

In 2020, governments are looking for ways to respond to the economic crisis that followed the Covid-19 pandemic, with economic stimulus packages worth trillions of dollars. To “build back better”, we need green recovery programmes. Stimulus programmes for the building sector can boost a Green Recovery, with massive benefits for jobs, the economy, and the climate.

The GlobalABC’s Work Area on Finance group has collected examples of green building programmes that can serve as an inspiration for stimulus programmes for the building sector. These case studies show key features of programmes and their benefits. These examples are aimed at governments and investors, including development banks, other public and private banks, and real-estate financing.

The response to the crisis as an investment in the future

Green building programmes are excellent value-for-money. For some of the programmes collected, extensive evaluations have been conducted and published, and benefits are provided with the example. Benefits include:

  • High energy and CO2 savings
  • Job creation
  • High private sector leverage
  • Health benefits through better homes
  • Socio-economic benefits through savings on energy bills
  • Macro-economic benefits through savings on energy subsidies

Many programmes help to introduce more ambitious standards for national building codes, by demonstrating the technical and financial feasibility of green buildings.

 

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Successful Blueprints for Green Building Programmes Exist

Green building programmes stimulate investments into green buildings, through financial incentives that compensate for the extra cost involved in reaching higher standards, either through renovation or for new construction. The programmes collected all use financial incentives to stimulate investments, that is loans or grants. They use financial incentives to make up for the slightly higher investment cost of green housing equal that leads to cost savings at a later stage. Programmes that provide non-monetary incentives, for example height bonuses or property tax incentives, have not been included.

Successful green building programmes are tailored to the local context. The programmes use various instruments, or a mix of them, targeting different groups, for example: 

  • green mortgages to households
  • bridging loans to developers
  • grants to homeowners or housing associations
  • concessional loans to developers or housing associations

Some of these programmes were supported by development finance institutions. Technical support was sometimes included to support private sector and public institutions in the introduction of higher technical standard

 

Green buildings programmes

 

GlobalABC webinar on 23 September 2020 discussed how to use successful green building programmes as a blueprint for green recovery programmes, as well as possibilities for financing them.       

Presentations (click on name to download): 

 

 

2018-12-01
2017 GLOBAL STATUS REPORT FOR BUILDINGS AND CONSTRUCTION
GlobalABC

The Global Status Report for Buildings and Construction asks the central question ‘Is the buildings and construction sector on track to meet the Paris Agreement Goals?’ It tracks global progress on key indicators for energy use, emissions, technologies, policies, and investments globally.

2020-07-09
The Building System Carbon Framework
The World Business Council for Sustainable Development (WBCSD)

The built environment is responsible for almost 40% of the global energy and process-related CO emissions. To meet the Paris Agreement and limit global warming to 1.5°C, we need to reach net-zero emissions across all activities in the building and construction system. The goal is for all new buildings to operate at net-zero emissions by 2030 at the latest, and for all buildings to operate at net zero by 2050.

This report proposes a new framework that can be used as a common language for carbon emissions, by all actors across the built environment. Using a common metric and a full life-cycle approach, the WBCSD Building System Carbon Framework facilitates collaboration across the value chain, where common solutions can be developed and implemented to help achieve system decarbonization.

It is neutral on materials and solutions, bridging embodied and operational carbon, which is a vital prerequisite for reaching net zero in the built environment. The framework also enables each user to identify the best emissions-reduction strategies for their part of the value chain and allows the stakeholders to make informed decisions based on clear and transparent information. 

2019-11-01 | UNEP
Emissions Gap Report 2019
UNEP

This is the tenth edition of the United Nations Environment Programme (UNEP) Emissions Gap Report. It provides the latest assessment of scientific studies on current and estimated future greenhouse gas (GHG) emissions and compares these with the emission levels permissible for the world to progress on a least-cost pathway to achieve the goals of the Paris Agreement. This difference between “where we are likely to be and where we need to be” has become known as the ‘emissions gap’.

2020-06-11
Adopting Decarbonization Policies for the Buildings and Construction Sector
GlobalABC

The building sector is not on track to lower total greenhouse gas emissions. Given that emissions from the sector represent nearly 40% of global energy-and process-related emissions, this represents a serious challenge to keeping global warming to 1.5oC. The Buildings sector must therefore decarbonize.

To support this goal, this report focuses on policy drivers for decarbonisation, and the costs and benefits associated with their implementation. In this report these policies are referred to as building climate actions, and include policies that tackle reducing (1) direct emissions from building energy use which includes (2) indirect emissions from the power sector, (3) and emissions from energy used in the building materials and construction supply chain (embodied emissions). All three aspects of the carbon footprint of buildings need to be addressed by policy-makers and practitioners in cost effective ways. Although gaps in the evidence base make generalisation unreliable, the body of experience over many years indicates that the social and economic co-benefits of taking these actions outweigh the costs of development and implementation. Inaction also increases the cost of climate adaptation, and exacerbates risks to health, security and property that create an imperative for taking urgent actions to decarbonize the buildings sector.

2020-01-01 | Edgar Hertwich, Reid Lifset, Stefan Pauliuk, and Niko Heeren.
RESOURCE EFFICIENCY AND CLIMATE CHANGE - SUMMARY FOR POLICYMAKERS
UNEP, IRP

This year, the UN Environment Programme (UNEP) published the tenth edition of its Emissions Gap Report, which revealed that the world must immediately begin delivering deeper and faster greenhouse gas emission cuts to keep global temperature rise to 1.5°C. To achieve this goal, we will need to use the full range of emission reduction options, including the implementation of material efficiency strategies.

The International Resource Panel (IRP) has been providing insights into how humanity can better manage its resources since 2007. Its research shows that natural resource extraction and processing account for more than 90 per cent of global biodiversity loss and water stress and approximately half of global greenhouse gas emissions. This new IRP report, Resource Efficiency and Climate Change: Material Efficiency Strategies for a Low-Carbon Future, commissioned by the Group of 7, points to exciting new opportunities to reduce these impacts through material efficiencies in homes and cars.

Climate mitigation efforts have traditionally focused on enhancing energy efficiency and accelerating the transition to renewables. While this is still key, this report shows that material efficiency can also deliver big gains. According to IRP modelling, emissions from the material cycle of residential buildings in the G7 and China could be reduced by at least 80 per cent in 2050 through a series of material efficiency strategies. A more intensive use of homes, design with less materials, and improved recycling of construction materials are among the most promising strategies.

2020-05-14 | Programme for Energy Efficiency in Buildings (PEEB)
National Alliances for Buildings and Construction: Long-term partnerships for the energy transition

National alliances that bring together the different stakeholders along the buildings and construction value chain are a formidable means of overcoming the fragmentation in the sector, and ramping up both the level of action and ambition towards zero emission, efficient and resilient buildings and construction [...]' - Martina Otto, GlobalABC

This recently launched PEEB report shows how national alliances can help speeding up the energy transition in the building sector. It demonstrates their potential and importance in working for the transition towards low emission, resilient and efficient buildings. The report explores the experiences of five national alliances in France, Germany, Mexico, Morocco and Tunisia, and gives recommendations for establishing new ones. Its core take-aways are: 

  • National alliances are key in mobilising real estate actors towards the energy transition and have a great potential for uniting different professions through common goals. They lead to better regulatory frameworks, highly innovative industry products, voluntary commitments and capacity development.
  • National alliances are developing around the world. They can be public or private sector driven and range from volunteer-based alliances to formalised structures. Some already have an activity record of more than 10 years, while others have just been created. Some may not even have been identified yet. 
  • National alliance success factors are the development of a common vision and goal, simple and engaging organisational structures, and clear joint communication.
2020-05-01 | German Sustainable Building Council - DGNB
CLIMATE POSITIVE: NOW!
German Sustainable Building Council - DGNB

This brochure produced by the German Sustainable Building Council details the path from climate neutral buildings to climate positive. It includes case studies of climate positive buildings from Singapore and Germany. Finally, it outlines the elements of a climate action strategy. 

2016-10-12 | INTA members and others
INTA INITIATIVE FOR HABITAT III REPORT
INTA

The strength of the text is that it is not subject to any institutional constraints. It has no claim other than to gather and summarise the many contributions from our members, representing a broad and deep knowledge base, emphasising the “disruptions” and the innovative solutions that we should introduce into urban policies.

2016-01-01 | ENERGIES 2050
GUIDE DU BÂTIMENT DURABLE EN RÉGIONS TROPICALES: TOME 1, STRATÉGIES DE CONCEPTION DES NOUVEAUX BÂTIMENTS
OIF/IFDD

The guide of sustainable buildings in tropical regions aims to bring some answers to the environmental, economic and social issues linked to a massive urbanization process and to buildings’ design and conception methods that are often unfitted to tropical regions. It has been designed to serve as a reference for professionals of the construction sector, and more generally, of the built environment, as well as to decisions makers in the relevant areas. More globally, it aims to be a tool for teachers, lecturers and students in building design and construction. It is finally an invitation for everyone to question its professional practices and contribute to the development of more resilient, sober in resources and with low GHG emissions infrastructures. The first part of this guide focuses on designing new buildings, while the second part focuses more on refurbishing the existing building stock.

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