module 02: energy and climate change (2) it green... · ifc has partnered with lgbc to pilot a...

Pilot Green Building Project in Lebanon

Dalia SakrResource Efficiency & Clean Energy Specialist

MENA Sustainable Business Advisory

March 2011

World Bank Group

Constitutes of five international organizations:

• International Bank for Reconstruction and Development (IBRD)

• International Development Association (IDA)

• Multilateral Investment Guarantee Agency (MIGA)

• International Centre for Settlement of Investment Disputes (ICSID)

• International Finance Corporation (IFC)

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IFC’s VisionThat people should have the opportunity to escape poverty and improve their lives

We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments.

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IFC’s Global Reach100+ country and regional advisory services offices worldwide

Port-of-Spain

Bogota

Buenos Aires

Sao Paulo

Mexico City

Dakar

Nairobi

TbilisiAlmaty

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IFC Advisory Services MENA

• Regional operation covering all 20 countries of the MENA region

• Offices/staff in 11 countries• Egypt (regional hub), Morocco, Algeria, West Bank, Jordan, UAE, Yemen,

Afghanistan, Lebanon, Saudi Arabia and Pakistan.

• Staffing: 130 permanent staff

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IFC’s mandate:Helping Businesses Combat Climate Change

• Addressing climate change and environmental and social sustainability is a top priority

• In year 2010, IFC invested more than $1 billion in renewable energy and energy efficiencyprojects

• IFC climate change mitigation Advisory Services especially useful in middle income countries

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Worldwide: Environmental Impacts of Buildings

Share of the Built Environment in Resource Use

Share of the Built Environment in Pollution Emissions

0% 50% 100%

40%

30%

20%

10%

Energy use

Raw materials use

Water use

Land

0% 50% 100%

40%

30%

20%

CO2 emissions

Solid waste generation

Water effluents

Source: Sustainable Building and Construction Initiatives, 2006

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Lebanon

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Lebanon: Energy Situation

• Full dependency on imported fuel.

• Significant problems in meeting the increasing electricity need.

• The electricity production, which is fully dependent on imported heavy fuel oil, is able to meet less than 70% of current demand (approx.1,800 MWh of 2,500 MWh).

• Consequently, all sectors are equipped with back-up diesel generators to compensate for electricity black-outs of 3-6 hours daily.

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Lebanon: Building Sector

• The buildings sector is among the highest energy consumers in Lebanon, thus offering significant potential for savings.

• According to UNFCCC: the residential, governmental and commercial sectors in Lebanon consume nearly 55% of total electricity production (29,2%, 16,9% and 8,8% respectively).

• The self-generated electricity consumed in buildings constitute between 33% - 44% dependent upon the type and use of the building.

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Why the Market Does Not Work?

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How to Break the Circle of Blame?

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Occupiers

“We would like to have green building, but there aren’t any”

Builders

“We can build green buildings but

developers don’t ask for them”

Developers

“We would ask for green buildings, but investors won’t pay

for them”

Investors

“We would fund green buildings, but there is not demand for them”

Circle of blame

New or Existing Building?

•New Buildings •Existing Buildings

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Mandatory or Voluntary Approach?

•Mandatory •Voluntary

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Market Drivers

“Green” Building Rating System

Can be a Powerful “Stimulator”

Learning from International Experience

European Rating

Systems

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Project Partner:Lebanon Green Building Council (LGBC)

IFC has partnered with LGBC to pilot a Green Building Rating System to promote “greening” of existing commercial buildings.

• Lebanese NGO. established Dec. 2008

• 10 Founding members ( Engineers, Architects & Academics)

• 40 current members, 6 Corporate and 3 Students.

• VISION: To promote a sustainable building industry in Lebanon.

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IFC’s Pilot Green Building Project in Lebanon

• Implement an integrated market approach for the promotion of Green Buildings in Lebanon;

Lebanon Green Building Council: support it in the development of a green building rating system;Service/Engineering Co’s: conduct green building assessments & rating and provide recommendations;Building Owners: implement recommended measures and get a “certificate”;Financial Institutions: facilitate financing of green building measures for building owners through banks and capacity buildingfor banks.Other Stakeholders

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IFC’s Pilot Green Building Project in Lebanon

• It focuses on existing office/commercial buildings.

• The pilot project has 5 main components:Component 1: Green Building Pilot Audits

Component 2: Establishment of Local GB Rating System

Component 3: Capacity Building of LGBC and Local Energy Companies

Component 4: Facilitating Cooperation with Financial Institutions

Component 5: Dissemination and Awareness-Raising

• Starts as a pilot project in Lebanon then upon success it would be up-scaled to include other MENA countries.

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Questions are welcome

dsakr@ifc.org

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