Green Construction in South Africa: Opportunities for Retrofitting & Maintenance

1. Green Construction in South Africa:Opportunities for Retrofitting &Maintenance Dr Rodney Milford cidb 27 July 2011

2. Overview • The case for green retrofitting and maintenance: • why it makes good sense • The drivers of green retrofitting and maintenance: • will it happen? • how do we make it happen? • Opportunities for Enterprise Development • Concluding comments

3. The Case for Green Retrofitting and Maintenance Why it Makes Good Sense

4. Climate Change Response Strategy • National Climate Change Response Strategy for SA 2004 • Long Term Mitigation Scenarios 2008 • COP 15 2009: • emissions peak between 2020 and 2025, stabilise for a decade, then decline in absolute terms towards 2050 • National Climate Change Response Green Paper 2010 • ....

5. Long Term Mitigation Scenarios (2008)

6. Long Term Mitigation Scenarios (2008) Sector Response?

7. IPCC Fourth Assessment Report (2007) • The building sector has the largest potential for reducing greenhouse gas emissions

8. Bali Summit (2007)

9. The South African Context South African Report on Greenhouse Gas Emission Reduction Potentials from Buildings http://www.cidb.org.za http://www.unep.org/sbci

10. Energy Efficiency Options After UNEP-SBCI cidb

11. Towards a Green New Deal (i) • Never waste a crisis Source: AlinskyDefeater’s Blog http://www.alinskydefeater.com

12. Towards a Green New Deal (ii) • US: 80% carbon pollution reduction target by 2050, ….. a 25 per cent energy efficiency target for existing buildings over the next decade and $150 billion in investment over ten years aimed at creating five million green jobs • Germany: Created 25 000 new jobs and sustained 116 000 existing jobs since 2002 by retrofitting some 200,000 apartments, while improving energy efficiency significantly • UK: .... • China: ....

13. Towards a Green New Deal (iii) • Australia: An economic stimulus package could create a double dividend of economic benefits and a reduction in carbon pollution by focusing on the following three areas: • Building retrofitting: roll out a major nationwide program and increase incentives to improve energy and water efficiency of existing residential, commercial and public buildings • Sustainable infrastructure: bring forward infrastructure investment in assets that reduce our carbon footprint and improve natural and social capital ...... • Green jobs policies: make green jobs a centrepiece of economic and industry policy, with a strong 2020 carbon pollution reduction target, ...... Joint Statement: Towards a Green New Deal: Economic stimulus and policy action for the double crunch Property Council of Australia, et al

14. The Case for Green Retrofitting • The construction industry is one of the industries with the highest job multipliers: • every R1 million of investment in SA creates around 9 jobs • Operation of the built environment accounts for about 23% of GHG emissions in SA • The building sector has greatest potential for reducing carbon at the least cost • Therefore ....

15. The Case for Green Retrofitting • Investing in energy efficient / green infrastructure and green buildings (including green retrofitting) results in investment in a sector that has: • one of the highest job multipliers, and • one of the highest abatement potentials for reducing carbon • “Biggest bang for the Rand!”

16. The Drivers of Green Retrofitting and Maintenance Will it Happen? How do we Make it Happen?

17. Key Driver; Infrastructure Expenditure • The biggest challenge worldwide is how to encourage and stimulate green retrofitting and refurbishment • Expenditure in Green Retrofitting and Maintenance: • do nothing • reallocate within the pie • increase the pie

18. Residential & Non-Residential Spend (2000 Rands)

19. Residential & Non-Residential Spend (2000 Rands) Public sector important Private sector more important?

20. Public Sector; Refurb. & Maintenance (GB) R130m R13m R4m cidb Quarterly Monitor; based on limited data

21. Public Sector; Refurb. & Maintenance (GB) R130m Green Retrofitting / Refurbishment? R13m R4m cidb Quarterly Monitor; based on limited data

22. DPW Strategic Plan; 2009/12 • R20m investment for energy efficiency for 22 buildings • National Treasury allocation to the DPW Energy Efficiency Programme: • R35m in 2009/10, R75m in 2010/11 and R120m in 2011/12 • Total public sector spend non-residential buildings 2010 ≈ R22b: • R100m ≈ 0,5%

23. DPW Strategic Plan; 2009/12 • Since 1997, Shared Energy Contracts comprising energy audits and retrofits have realised an annual saving of approximately R56m in around 4 000 buildings: • currently being expanded

24. DPW Strategic Plan; 2011/14 • DPW will continue to implement the energy efficiency initiative countrywide in all State–owned buildings • 3 375 of the 108 652 State-owned buildings have been prioritized for 2011/12 with a 7% (65000kwh) reduction in energy consumption envisaged

25. Targets

26. DPW 2011/14 • The Department is developing a Green Building Policy Framework which will facilitate the introduction of environmentally sound/ sustainable building, mitigate against Greenhouse Gas emissions, promote social cohesion in all government owned and leased properties as part of contributing to the Green Economy

27. Energy Efficiency Strategy (DME 2004, 2011)

28. SANS 10400XA & SANS 0204 • National Building Regulations • SANS 10400XA; Application of the NBRs, Energy Use in Buildings • SANS 0204; Energy Efficiency in Buildings • Does not apply to existing buildings – other than retrofits requiring plan approval

29. The Carbon Tax Option • ...... consideration be given to partial earmarking of carbon tax income to incentivise energy efficiency retrofitting of private and public sector buildings: • ring-fencing not allowed

30. cidb Requirements for Green Building Certification • ... public sector buildings (including PPPs) for which the planning phase is begun (including major renovations for which planning approval is required) shall be designed and/or constructed to achieve, at a minimum, 4 Star Green Star SA certification, where such Green Star SA exists; • Green Star SA Office V1 gazetted as a best practice • Does not apply to existing buildings – other than retrofits requiring plan approval

31. Emerging Strategy; Non-residential Buildings Public Sector Private Sector New Existing

32. Emerging Strategy; Non-residential Buildings Public Sector Private Sector New Existing • Energy Performance Certificates

33. Emerging Strategy; Non-residential Buildings Public Sector Private Sector New Existing • Energy Performance Certificates • Mandatory retrofitting below thresholds?

34. Emerging Strategy; Non-residential Buildings Public Sector Private Sector New Existing • Energy Performance Certificates • Mandatory retrofitting below thresholds? • Energy Performance Certificates on sale or change of ownership / tenants

35. Emerging Strategy; Non-residential Buildings Public Sector Private Sector New Existing • Energy Performance Certificates • Mandatory retrofitting below thresholds? • Energy Performance Certificates on sale or change of ownership / tenants • Minimum requirements?

36. Energy Performance Certificates • Who: • Dept. of Energy, DPW, ....

37. Green Retrofitting & Refurbishment • The biggest challenge worldwide is how to encourage and stimulate green retrofitting and refurbishment: • government stimulus packages together with regulation (EPCs) appears to be the most effective • Is this likely in SA? • at what scale?

38. Avoiding the Lock-in Effect • Avoid any possible lock-in to inefficient building stock with long-term consequences; • new buildings • retrofits • This requires; • standards • skills • ......

39. Opportunities for Enterprise Development

40. Enterprise Development Models (i) • Are the enterprise development models different for: • new capital works • retrofitting and refurbishment? • Are the enterprise development models different for: • retrofitting and refurbishment • green retrofitting and refurbishment?

41. Enterprise Development Models (ii) • Are the enterprise development models different for: • new capital works • retrofitting and refurbishment? • Retrofitting and refurbishment of buildings is a clearly defined market sector: • allows for specialisation

42. Enterprise Development Models (ii) • Are the enterprise development models different for: • retrofitting and refurbishment • green retrofitting and refurbishment? • Green retrofitting and refurbishment may require: • new / additional skills sets • new / additional standards

43. Concluding Comments

44. Comments • The case for green retrofitting and refurbishment is clear: • double dividend of economic/employment benefits and a reduction in carbon • Will significant green retrofitting and refurbishment take place: • public sector is responding • private sector will probably lag • significant change will probably require government stimulus packages together with regulation (EPCs) • Enterprise development: • models are largely the same • ED depends on opportunities

45. Thank You

46. Enterprise Development • Enterprise Development (ED) can be anything from: • the creation of new enterprises to • the redevelopment or funding of existing enterprises with the intention of accelerating the development an enterprise, or • many activities in between NEDA; NationWide Enterprise Development Administrators