Market transformation for Green Building

CERTIFIED SUSTAINABLE BUILDING ADVISOR PROGRAM TORONTO

CaGBC

What is a Building?

What is Sustainability?

What is a Sustainable Building Advisor?

storytelling

The Transport of the Future Klaus Bürgle (The New Universe 76, 1959)

Highway #7, Downtown Houston, Texas, USA Edward Burtynsky (Oil, 2004)

The Transport of the Future Klaus Bürgle (The New Universe 76, 1959)

Badra Worli Sea Link, India Woodysworldtv (Flickr, 2011)

our stories offer the promise of

reward

raw materials

cheap labour

stable energy supply

trade relations

affordable fuel

disposal costs

7 Billion

we need to

re-imagine the rewards

Design Thinking 101

Grab a partner and a piece of paper

Design Thinking 101

Designing your ideal alarm clock

Design Thinking 101

5 Minutes each

1. When/where/why do you want to use an alarm clock?

2. What features do you look for in an alarm clock?

3. What issues do you have with alarm clocks?

Design Thinking 101

Sketch out a diagram of your partner’s ideal alarm clock –

bonus points for sustainable features

3- minutes

Design Thinking 101

Present your drawings – 2 minutes each

Give feedback

Design Thinking 101

Make a “final” model of your partner’s alarm clock

5 minutes

Design Thinking 101

What was your experience?

transformation

Population growth >>>

- E

arth

’s C

arry

ing

Cap

acity

+

Business as Usual

Sustainable Building

ZEH/ Living Building

A. MARKET PROFILE

B. CONSUMER ENVIRONMENT

C. FINANCIAL ENVIRONMENT

D. REGULATORY ENVIRONMENT

E. INDUSTRY CAPACITY

1. PLANN

ING

2. DESIG

N

3. CON

STRUCTIO

N

4. SALES

5. OPER

ATION

6. RE-SALES

7. RETR

O-FITS

8. DEM

OLITIO

N MAPPING THE VALUE CHAIN In order to transform the market, you need to look at the factors that influence the Current Conditions and the primary activity areas in the housing lifecycle

Developers

What they can build

Capability Regulation

What they want to build

Profitability Aspiration

• Increase knowledge

• Increase availability of technology

• Provide legal frameworks

• Mandate performance

• Promote transparancy

• Ensure compliance

• Lower cost

• Increase demand

• Increase accessibility

• Lower risk

• Improve perception

• Increase desire

To increase the uptake of sustainable building, it must become EASIER and MORE DESIRABLE to build it, and also harder and less desirable not to.

Market transformation solutions must:

1. LOCALIZED BUILDING APPROACHES

2. FINANCIAL MOBILIZATION

3. BUILDING PERFORMANCE ASSURANCE

4. CONSUMER EDUCATION

5. TRAINING & CAPACITY BUILDING

6. POLICY FRAMEWORKS

7. MEET SOCIAL NEEDS

8. INFRASTRUCTURE INTEGRATION

9. FACILITATING PROCUREMENT

10. RECOGNIZING SUCCESS

Ten distinct WORKING AREAS for driving market transformation emerged.

Only ONE primarily addresses design.

The other nine address NON-DESIGN BARRIERS

Cost/Benefit of Design Approach - E

nerg

y C

onsu

mpt

ion

+

Energy Generator

Zero Energy

Zero Energy Ready

Passive Design

Building Envelope

Electrical & Mechanical

Renewable Energy

Location

KEY ISSUE #1: LOCALIZED BUILDING APPROACHES

OPPORTUNITY AREAS

• Support innovation for localized approaches and technologies.

• Focus on cost reduction of sustainable building to increase affordability.

• Continue to develop regional best-practices and guidelines based on measured performance and industry experience.

MOBILIZATION TACTICS:

• Pilot Projects

• Performance Testing

• Clarifying Regionally-Appropriate Approaches

Photo: Santa Barbara Garden, Shanghai, China

Photo: URBI Hacienda Santorini, Mexicali, Mexico

Capitalism, free enterprise, the economy, corporations, currency, markets, and regional borders are not forces of nature. We invented them. If they don't work, we can and must change them.

-David Suzuki

OPPORTUNITY AREAS

Increase capital available: construction financing, mortgages, retrofit loans, renewable energy project financing, etc.

Reduce the financial carrying costs: insurance premiums, loan interest etc.

Address the “split incentive.

MOBILIZATION TACTICS:

Green Building Underwriting Standards

Green Building Lending Products

Green Leases

Micro-Financing Solutions

KEY ISSUE #2: FINANCIAL MOBILIZATION

Grameen Shakti provides low interest loans for solar installations in rural villages Source: www.powergenworldwide.com

The US Capital Markets Partnership has released a Green Building Underwriting Standard

KEY ISSUE #3: BUILDING PERFORMANCE ASSURANCE

OPPORTUNITY AREAS

• Integrate energy performance auditing and monitoring within residential construction.

• Enforce compliance to building energy codes.

• Improve data transparency around energy usage and costs to influence policy and consumer decision-making.

MOBILIZATION TACTICS:

Building Energy Codes

Building Inspection Standards

Labelling

Energy Monitoring & Reporting Standards

Led by the US Dept of Energy, the APP produced guides to building energy codes for all 7 APP countries.

KEY ISSUE #4: CONSUMER EDUCATION

OPPORTUNITY AREAS

• Support market readiness efforts to provide consumers with understanding of the value proposition.

• Increase consumer familiarity with green buildings (i.e. how they look, how they work) to increase buyer demand and confidence.

MOBILIZATION TACTICS:

• Improved Lifecycle Costing Data

• Demonstration Projects & Tours

• Energy Labelling

• Public Promotion/Outreach

Source: Minto Inspiration, Manotick, Canada: Virtual and On Site Tours

KEY ISSUE #5: TRAINING & CAPACITY BUILDING

The Indian Green Building Congress

Source: WORLD GREEN BUILDING COUNCIL

OPPORTUNITY AREAS

• Provide supporting trades with access to design, construction and maintenance skills necessary to service buildings across their entire lifecycle.

• Disseminate best practices and support knowledge transfer to increase adoption of effective construction techniques and technologies.

MOBILIZATION TACTICS:

Best Practices Database

Educational Curriculum Development

Trade-Oriented Training Sessions

Pilot Projects

National Green Building Councils

Full Member Emerging Member

Established Non-Member

Australia Korea China Canada Hong Kong

India Japan Mexico

USA

KEY ISSUE #6: POLICY FRAMEWORKS

OPPORTUNITY AREAS

• Promote aggressive building energy codes and regional energy targets that raise the bar for building energy performance.

• Clarify the value of green building for local, regional and national governments, including sustainability, energy security, job creation and housing affordability.

• Support policies and regulatory initiatives that support or level the playing field for sustainable building.

MOBILIZATION TACTICS:

Policy Development Support

Incentives, Penalties & Tax Subsidies

Economic Development Opportunities

Energy Autonomy

Source: Harvard Business Review, Ranking Environmental Regulation and Performance

Source: IEA

KEY ISSUE #7: MEET SOCIAL NEEDS

OPPORTUNITY AREAS

• Incorporate sustainability principles into new developments aimed at meeting housing shortfalls.

• Create economic opportunities for low-income communities through sustainability: micro-financing for solar panel leasing, local construction jobs, maintenance programs etc.

MOBILIZATION TACTICS:

Social Housing Development Guidelines

Affordable Housing Policy

Social Enterprise Ventures/Micro-Lending

Local Construction Training/Certification Programs Source: BaSIC

Source: WORLD RESOURCE INSTITUTE

KEY ISSUE #8: INFRASTRUCTURE INTEGRATION

OPPORTUNITY AREAS

• Integrate transportation, infrastructure and land-use policy and planning.

• Support grid connection technologies for renewable tie-in and metering.

• Where grid connection is not possible, support local distributed energy networks and district energy.

MOBILIZATION TACTICS:

Transit Oriented Design

Improved Metering Capabilities (energy & water)

Feed-In Tariff Programs

District Energy Systems

KEY ISSUE #9: FACILITATING PROCUREMENT

OPPORTUNITY AREAS

Facilitate acceleration of green technologies technologies to improve market accessibility.

Promote development of local manufacturing capacity for components and materials.

Support retail strategies to increase availability of components for smaller builders.

MOBILIZATION TACTICS:

Strategic Trade Relationships

Green Building Product Directory/Database

Manufacturer Education

Retail Green Product Strategies

42

KEY ISSUE #10: RECOGNIZING SUCCESS

OPPORTUNITY AREAS

• Celebrate the achievement of stakeholders and identify leaders.

• Continue to foster issue-specific working groups/collaborative networks across to advance priority sustainability issues.

MOBILIZATION TACTICS:

• Online Communities

• Awards/Recognition Programs

• Professional Networks/Directories

• Case Studies

• Media Relations Strategies Sources Top to Bottom: Zeroenergyhousing.org, Treehugger, Net-Zero Energy Home Coalition

Change = Risk

Mortgage

Kids

Car

INTEGRATED DESIGN PROCESS: What is it?

IDP brings together all of the building stakeholders early in the

design process to align on objectives and provide expertise.

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Property Owner

New Potential Tenant

Neighbourhood Representative

Architect/Designer

Contractor