Misconceptions About Green Construction Costs

Key players in real estate and construction commonly misjudge the costs and benefits of green buildings, creating a major barrier to more energy efficiency in the building sector, according to a study released by the World Business Council for Sustainable Development (WBCSD).

Respondents to a 1400 person global survey estimated that building green costs 17% more than conventional construction – more than triple the true cost difference of about 5%.

They also estimated that buildings emit 19% of the world’s greenhouse gas emissions, while the actual number is double at 40%.

The study also found that fewer than one in seven industry respondents have participated directly in a green building project. Involvement ranges from a high of 45% in Germany to just 5% in India. About 20% of architects, engineers and developers have been involved in green building projects, compared to just 9% of owners and tenants.

“The global construction boom in the developing world has created a tremendous opportunity to build differently and dramatically decrease otherwise energy demands,” says United Technologies Corp. Chairman and CEO George David.

“Existing technologies combined with common sense design can increase energy efficiency by 35% and reduce heating costs by 80% for the average building in industrialized markets,” he said.

“The world is undergoing rapid transformation, with strong demographic and economic growth driving a move towards urbanization on an unprecedented scale. We as industry leaders have a responsibility to ensure that this growth is achieved in a sustainable manner,” says Bruno Lafont, Chairman and CEO of Lafarge.

“Life cycle analysis shows that 80-85% of the total energy consumption and CO₂ emissions of a building comes from occupancy through heating, cooling, ventilation, and hot water use. If we want to make an impact on climate change, we therefore need to tackle this challenge. Combining the right materials when designing a building envelope can greatly reduce a building’s energy requirements, increase its life span and ensure consistent performance over time,” he said.

“In order to achieve a step change in energy efficiency in buildings, there is a need for strongly supportive policies and regulatory frameworks. Governments and local authorities need to develop sound policies,” says Bjorn Stigson, President of the World Business Council for Sustainable Development.

The report, “Energy Efficiency in Buildings: Business Realities and Opportunities,” is available at www.wbcsd.org. The project is co-chaired by Lafarge and United Technologies Corp. Other participating companies are CEMEX, DuPont, Electricity de France, Gaz de France, Kansai, Philips, Sonae Sierra, and Tepco.

Headquartered in Geneva, Switzerland, the WBCSD is a global association of about 200 companies that serves as a business advocate for sustainable development through economic growth, ecological balance, and social progress.