accelerating green buildings transition in...
TRANSCRIPT
Accelerating Green Buildings
Transition in Bangladesh
Bangladesh is becoming increasingly vulnerable to air pollution, sea level rise, high tide and river flood by cyclone,
potentially caused by greenhouse gas emissions from rising fossil fuel consumption. The Nationally Determined
Contribution of Bangladesh focussing on climate commitments hints at a targeted 25% reduction of overall energy
consumption in commercial buildings. Green buildings have proven to yield energy savings of 40 to 50% and water
savings of 20 to 30% when contrasted against conventional buildings thereby contributing towards sustainable energy
and supporting the climate goal of limiting global temperature rise to 2°C (above pre-industrial levels). Estimates by IFC
suggest that the green buildings market is worth USD 1 billion (commercial) and USD 2.2 billion (residential) by 2025.
7
The building sector in any given economy is known to have
significant environmental impacts, including a toll on electrical and
thermal energy consumption, and carbon dioxide emissions.
Energy demand has been on a constant upsurge in the country,
and a lot of it is attributed to industrial sector, to the tune of 50% of
national primary energy. By 2025, the demand for electricity is likely
to rise by 3,000 MW. Currently there are 21 industrial zones in the
country and a soft target of scaling it up to 42 is in the pipeline. This
is a straight indication at the sharp rise in electricity needs, which
can essentially be catered through green building strategies in the
industrial sector of the economy, to start with.
Coupled with strong energy demand is the rising population
and improving economy of Bangladesh. Bangladesh is the
eighth most populated country in the world, with tremendous
urban growth. While all sub-sectors are growing, the
residential sector is projected to take the majority of future
floor space. Multi-unit buildings are expected to be the
primary area of growth within residential, with an emphasis
on affordable housing.
Estimations suggest, there is a shortage of about 5 million houses in
Bangladesh, as of 2018. A third dimension parallel to the energy
challenge and perhaps most critical is the high climate vulnerability of
Bangladesh as outlined in the two recent key reports – The
Intergovernmental Panel on Climate Change's ‘Fifth Assessment Report'
and World Bank’s ‘Turn Down the Heat’ The country is becoming
increasingly vulnerable to air pollution, sea level rise, high tide and river
flood by cyclone, potentially caused by greenhouse gas emissions from
rising fossil fuel consumption.
To fight all the above challenges with a view to futuristic climate resilience
and bridging the energy gap, green buildings which are principally
designed and built with a focus on energy and water conservation,
reduction of material waste, flexibility, durability, and comfort are a need
of the hour. The Nationally Determined Contribution of Bangladesh
focussing on climate commitments hints at a targeted 25% reduction of
overall energy consumption in commercial buildings. Green buildings
have proven to yield energy savings of 40 to 50% and water savings of
20 to 30% when contrasted against conventional buildings (World green
Building Council ). Green buildings can act as an effective tool towards
sustainable energy and support the global climate goal of limiting global
temperature rises to 2°C (above pre-industrial levels) positively.
Source: Sixth Annual Climate Change and Environmental Risk Atlas (Maplecroft)
High climate vulnerability, energy scarcity issues and environmental footprints hint at the need for Bangladesh to adopt resource efficient strategies in the building space
Exhibit 1: Global Risk Analysis placing Bangladesh in extreme risk category
21
The Bangladesh National Building Code was formulated in 2006
to achieve satisfactory performance of any building, control and
regulate construction in the country. It establishes minimum
standards for design, construction, quality of materials, use and
occupancy, location and maintenance of buildings within
Bangladesh in order to safeguard within achievable limits, life,
health, property and public welfare. This was followed by
development of Building Construction Rules after a couple of
years.
The green building movement was triggered afterwards when in
2012, a Recommendation document for Green Building Code was
brought out with the help of International Finance Corporation.
Bangladesh government policies are encouraging green and
sustainable buildings, as is evinced through the 7th Five Year Plan
outlining incorporation and introduction of Green Building Code
considerations in the National Building Code, standardization and
labelling of energy efficient electrical appliances & equipment,
implementation of Energy Management system for industries
Bangladesh is demonstrating strong regulatory intent to abide by a green development philosophy
2016
2012
2008
2006
Energy Efficiency &
Conservation Master
Plan 2030
Recommendation for
Green Building Code
with IFC support Bangladesh National
Building Code (BNBC)
Building Construction
Rules
2018
Building Energy & Environment
Rating For Design and
Construction of Buildings
(Draft)
A significant stride in the green building space was
formulation of the Building Energy & Environment Rating for
Design and Construction of Buildings (Draft) in 2018. Further,
Bangladesh’s Ministry of Housing and Public Works is
currently creating Green Buildings Guidelines.
Exhibit 2: Timeline of policy based developments in real estate space of Bangladesh
Stakeholder Key roles
Architects & consultants
Innovative designsCode compliance and technical due diligence
Code Development Agencies
Code developmentAwareness programs, market development
Financial institutions
Financial products:Targeted investments in green buildingsDiscount in insurance premiums
Government organisations
Regulations with strong compliance mechanisms Capacity building and job creationProperty and sales tax incentives
Owners and occupants
Take responsibility of built environmentDemand for sustainable and efficient buildings
Real estate developers
Adaptation to market needsSkills development
Technology providers
Innovation and localisation of state of art technologiesTrain people in technology/ service operation
Technology
provider
Financial
Insti-
tutions
Owners
and
occupants
Architects and
ConsultantsGovernment
organizations
Real estate
developer
Code
develop-
ment
agencies
Building
Trade
community
24
The building stock is projected to yield a total market of USS 9.7 billion for commercial property and USD 62.6 billion for residential units.
Estimates by IFC suggest that out of this market potential, the green buildings market is worth USD 1 billion (commercial) and USD 2.2
billion (residential) by 2025. The green market, while not fully established, grew considerably in 2015 and is making strides mostly attributed
to the industrial sector. The garment industry is primarily driving growth in green building. The country had its first green building back in
2011. As of now (2018), Bangladesh has witnessed 62 LEED certified activities, and close to 1 million LEED certified square metres.
The additional cost of constructing green building is projected depending upon the size and extent of project and the amount is USD 5,800 to
USD 9,500. It has been estimated for green buildings that the financial payback typically exceeds the additional cost of green building by 4-5
times over 20 years. The savings in monetary terms come from the efficient use of utilities which results in decreased energy expenses and
the projected savings in different sectors is to the tune of USD 130 billion on energy bills.
Expected market potential of over US$3 billion reflects
significant untapped potential in the market
Figure 3: Projected building stock and anticipated share of green buildings in Bangladesh till 2025
0%
2%
4%
6%
8%
10%
12%
0
200
400
600
800
2018 2019 2020 2021 2022 2023 2024 2025
Residential Office/ Retail Other commercial % new green buildings
Case in point: Plummy Fashions Ltd.
A knitwear manufacturing unit located in Narayanganj, 20 kms
south from Dhaka city centre. The site is 5.5 acres.
Platinum Rating under LEED for New Construction 2009
Platinum certified on 09/22/2015
Points earned: 92 out of 110
Tangible benefits and actions:
o 42% improvement on baseline building performance
rating
o 13% onsite renewable energy
o 35% green power purchase
o 20% recycled content building materials
o 20% regionally extracted, harvested, recovered, or
manufactured materials
o 50% FSC-certified wood products
o 75% diversion of construction and demolition debris
o 75% of occupied space has daylighting
o 100% reduction in potable landscape water use
o 40% reduction in baseline indoor water use
o 50% reduction in wastewater generation
Source: GBIG
Bangladeshi garment industry is currently leading the
world in adding green factories to the economy. There
are 67 LEED certified green factories in the apparel
sector in Bangladesh and more than 280 factories
registered for LEED certification. Apart from LEED, IFC
has developed the Excellence in Design for Greater
Efficiencies (EDGE) tool which empowers developers
and builders to quickly identify the most cost effective
ways to reduce energy use, water use and embodied
energy in materials. The strategies integrated into the
project design are verified by an EDGE Auditor and
certified by Green Business Certification Inc. (GBCI).
Renew
-ables
Energy efficiency
equipment
Climate Responsive Building Design
Source: IFC Green Buildings Market Intelligence Report for Bangladesh
26
Stakeholders are coming together to position Bangladesh
as world leader in green factories and best adapt from
international experience
Certified Green
Buildings in
Bangladesh
A total of 96 projects
with LEED
certification from
USGBC
17.91 M
LEED certified sqft
67 certified LEED
factories in apparel
sector – highest in
the world
IDCOL
Te
ch
pro
vid
ersEM
EIAReal Estate and Housing Association in Bangladesh (REHAB) A
ssu
ran
ce
TaxArchitects and Consultants
Run the business
Bangladesh Bank
Bangladesh Green Building Academy
National Housing Authority (NHA)
Bangladesh House Building Finance Corporation
EDGE tool
19
0,0
00 p
eo
ple
Asia Pacific
National Housing Finance and Investments Limited
International financiers
Emerging Markets Sector Leaders
LEED
Japan
Aca
de
mic
ians
Owners and tenants
Ho
us
e B
uild
ing
Re
se
arc
h In
sti
tute
Location
Adamjee EPZ, Narayanganj, Bangladesh
Developer
Bitopi Group
Size
Total area: 245,947 sqft
Product : Bottoms
Capacity : 450,000 pieces / month (approximate)
Use
RMG Factory
Rating
Highest rated green factory in Bangladesh (97/110)
LEED for New Construction 2009 Platinum certified on
07/15/2016
R e m i H o l d i n g s L t d
Tangible benefits
Renewable energy, emissions, water, energy efficiency
9% onsite renewable energy
35% green power purchase
40% improvement on baseline building
performance
100 tons/ year CO2 emissions reduction
(building is functional since January 2004)
40% reduction in potable water
consumption
Green
Measures
under-
taken
Energy and
atmosphere
• 40% improvement on
baseline building
performance rating
• 9% onsite renewable
energy
• 35% green power
purchase
Materials and resources
• 20% recycled content building
materials
• 20% regionally extracted
materials
• 50% FSC-certified wood
products
• 75% diversion of construction
and demolition debris
• 10% salvaged or reused building
materials
• 2.5% rapidly renewable materials
Indoor environment
quality
• 75% of occupied
space has
daylighting
• 90% of occupied
space has quality
views
Water efficiency
• 100% reduction in
potable landscape
water use
• 40% reduction in
baseline indoor water
use
• 50% reduction in
wastewater
generation
26
Location
Manila, Philippines
Developer
Imperial Homes Corporation, known for designing green
community that embraces the perks of eco-friendly lifestyle
Statistics
1,456 green apartments priced at approx. $40,000
each
Use
Residential building
Rating
EDGE for Homes Certificate
I m p e r i a l H o m e s , P h i l i p p i n e s
Tangible benefits
Renewable energy, water, materials
0.4 tCO2/year/home GHG reductions
42% energy consumption reduction: savings
of USD11/month/home
26% monetary savings through choice of
sustainable building materials
20% reduction in potable water consumption:
savings of 2.4kL/month/home
Reduced window to wall ratio
Use of efficient LED lighting
Installation of solar photovoltaic panels on home roofs
Low flow faucets for washbasins, kitchen sinks and showerheads
Corrugated Zinc sheets for roof
In situ reinforced wall for external walls
Ferro-cement Wall Panel for Internal Walls
Green
Measures
under-
taken
Remi Holdings Ltd, Bangladesh Imperial Homes, Philippines
26
Multidimensional challenges are hindering the
proliferation of green buildings in BangladeshThe green building market is perceived to have immense potential in Bangladesh but requires a highly conducive ecosystem to help realise the
potential. The adjacent exhibit demonstrates positioning of the green building landscape in the country with respect to five major facilitating
pillars.
G O V E R N M E N T B I Z E N V I R O N M E N T F I N A N C I N G
C U R R E N T G R E E N
M A R K E T
G R O W T H
P O T E N T I A L
Evidently, there are three very particular areas that need deep strengthening to realise the growth potential of the green
building market.
a. Policy incentives are being created by the government. It is now also and equally important to raise
awareness among project developers on the long-term benefits of green buildings. Further instruments of the
likes of public housing of green building, rent certification, bonus density, could be explored to attract
investors, developers and owners/ tenants.
b. The Green Building guidelines, or incorporation of such considerations in the building code is of utmost
importance. It can be complemented by an abiding policy on voluntary certifications for all new constructions,
which can give additional branding based driver for developers to pursue.
c. As is understood from the gaps, climate-smart investment, including in green buildings to improve access to
low-cost, long term finance has a huge role to play. Going forward, access to finance is required to be heavy
eased for promoting greater green building development in Bangladesh.
Bangladesh must recognise the immense growth potential of green buildings,
multiple socio-economic benefits and roll out strategies targeted at solving critical
bottlenecks
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About IDCOL
Infrastructure Development Company Limited
(IDCOL) was established on 14 May 1997 by the
Government of Bangladesh. Since its inception,
IDCOL is playing a major role in developing and
financing infrastructure, renewable energy and
energy efficiency projects in Bangladesh. Today the
company stands as the market leader in private
sector energy and infrastructure financing in
Bangladesh.
What IDCOL offers:
• Long Term Local and Foreign Currency
Loan for Infrastructure Projects
• Agency services
• Debt and Equity Arrangements
• Corporate Advisory Services
• Training and Capacity Building Services
• Soft Loan and Grant for Renewable Energy
Projects
46 Electric mobility in India: Leveraging collaboration and nascency
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