How policies shape high-performance building standards and climate goals
- October 22, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
How policies shape high-performance building standards and climate goals
Sub: Env
Sec: Climate
High-performance buildings (HPBs):
- High-performance buildings (HPBs) are emerging as vital solutions in addressing both urban and climate-related challenges within the construction sector.
- These buildings are designed to reduce greenhouse gas emissions, minimize energy and water consumption, and cut operational costs while improving occupant well-being.
- They are becoming increasingly attractive to businesses and residents alike due to their environmental and financial advantages
Key Features of HPBs:
- Climate-Adaptive Design: Reduces energy use and operational costs.
- Environmental Impact: Lowers greenhouse gas emissions.
- Well-Being: Enhances the comfort and health of occupants.
- Financial Benefits: Offers higher property value, reduced utility bills, and access to carbon financing.
Global Support for HPBs:
- Governments around the world are creating policies and financing mechanisms to promote HPBs by focusing on energy efficiency, resource management, and carbon neutrality.
- Examples of International Policies:
- European Union: The Green Deal targets climate neutrality by 2050 and mandates energy-efficient building designs and retrofits.
- Germany: KfW Bank offers low-interest loans for energy-efficient projects.
- Denmark: BR18 building codes incentivize sustainable construction.
- United States: Programs like Energy Star and LEED certification provide tax credits for green-building initiatives.
India’s Role in Supporting HPBs:
- India is actively promoting energy-efficient buildings through its National Action Plan on Climate Change. The Bureau of Energy Efficiency (BEE) has developed the Energy Conservation Building Code (ECBC), which aims to reduce energy demand by up to 30%. Other initiatives include:
- Green Rating for Integrated Habitat Assessment (GRIHA): Over 3,000 registered projects focusing on sustainability.
- Indian Green Building Council (IGBC): Promotes energy-efficient designs with more than 14,000 certified projects.
- Incentives: Cities like Hyderabad, Noida, and Pune offer higher floor area ratios for ECBC-compliant buildings.
- BEE aims for 30% of new buildings to achieve net-zero energy status by 2030.
Financial Advantages of HPBs:
- As the cost of green technologies drops, the price gap between conventional and high-performance buildings is closing.
- Key financial benefits include:
- Energy Savings: HPBs offer significant reductions in energy consumption, like Infosys’ energy-efficient campuses that cut energy use by 45%.
- Property Value: HPBs command higher property values due to lower operational costs, environmental benefits, and growing demand from eco-conscious buyers.
- Investment Appeal: HPBs lead to higher net operating incomes, lower vacancy rates, and longer leases, making them attractive to investors.
Financing HPBs:
- HPBs can leverage various funding sources, including:
- Carbon Financing: HPBs can generate carbon credits by reducing emissions, which can be traded for financial gain in regions with carbon pricing (e.g., the EU and China).
- Green Bonds: In 2020, green bonds worth $269.5 billion were issued globally, helping to finance sustainable building projects.
- Climate Funds: Institutions like the World Bank and the Green Climate Fund provide financial support for HPBs.
- These mechanisms offset the higher upfront costs of constructing HPBs, making them more affordable and promoting wider adoption.