IFC S GREEN BUILDINGS MARKET TRANSFORMATION PROGRAM

Transcription

1 IFC S GREEN BUILDINGS MARKET TRANSFORMATION PROGRAM

2 IFC IS THE LARGEST DEVELOPMENT BANK FOCUSED SOLELY ON THE PRIVATE SECTOR IBRD IDA IFC MIGA ICSID International Bank for Reconstruction and Development International Development Association International Finance Corporation Multilateral Investment Guarantee Agency International Centre for Settlement of Investment Disputes Loans to middle-income and creditworthy lowincome country governments Interest-free loans and grants to governments of poorest countries Solutions in private sector development Guarantees of foreign direct investment s noncommercial risks Conciliation and arbitration of investment disputes 2

3 AREN T GREEN BUILDINGS ARE MORE EXPENSIVE AND DECREASE AFFORDABILITY? Low income families could be paying close to 20% of their household income for energy and water Globally, 400 million homes are predicted to be built in next 10years, most of them will be in emerging markets Green buildings can reduce energy use by 20% with only marginal increase construction costs

4 CREATING MARKETS THROUGH A COMPREHENSIVE APPROACH Building codes, incentives and awareness raising through policy makers New financial products through public and private banks Demonstration projects with developers EDGE voluntary certification system assures quality for buyers 4

5 ENGAGEMENT WITH POLICY MAKERS 1. INDONESIA National Jakarta Bandung Makassar* Surabaya* Green Building Code Energy Efficiency 2. VIETNAM Code 3. BANGLADESH* 4. COLOMBIA 5. PHILIPPINES National 6. PERU* & COSTA RICA* Mandaluyong Green Building Code * In development/ waiting approval 7. MONGOLIA, CAMBODIA & MYANMAR In early planning stage About 18 Million m2 of new building space has complied with these codes Equivalent to ~1/3 rd of office buildings in Manhattan BEFORE THE CODE CODE DEVELOPMENT CODE ENFORCEMENT NEXT STEPS COMPREHENSIVE PROCESS 5

6 A CONTEXTUAL APPROACH TO GREEN BUILDING CODES Sensitivity Analysis of Energy Efficiency option for Jakarta High Impact Measures Office Retail Hotel Hospital Apartment School Photoelectric controls [inclusion of controls to maximize daylighting] 4% 3% NA 8% NA 3% Solar Shading [addition of horizontal and vertical devices] Glass performance [higher solar and thermal properties] Efficient Chillers [higher chiller COP] Variable speed drives [inclusion of variable drives on pumps] Percentage glazing [limiting window to wall ratio of the façade] 10% 5% 10% 9% 5% 2% 7% 3% 9% 8% 7% 4% 11% 8% 6% 7% 9% 12% 2% 1% 2% 1% NA NA 8% 4% 9% 7% 2% NA Low energy Lights [limiting the power density for artificial lighting] Thermostat Management [limiting the min temperature] 7% 8% 7% 16% 6% 5% 2% 3% 3% 7% 6% 11% Heat Recovery [adding heat recovery unit to fresh air inlet] 2% 5% 3% 8% NA NA * Note: the above values must not be aggregated as they only reflect the potential of making each individual measure. The total energy savings potential will be smaller than the sum of individual measure 6

7 A CONTEXTUAL APPROACH TO GREEN BUILDING CODES COST PAYBACK GREEN BUILDING MEASURE %SAVING INCREASE PERIOD ACTION Window to wall ratio 8.0% Negative 0 Include Solar Shading Devices 17.3% 2.2% 15.0 Consider Reflectivity - Wall 0.5% 0.0% 4.8 Include Thermal Conductance (Wall U-Value) 0.3% 0.5% 98.6 Exclude Reflectivity Roof 0.2% Negligible - Include Thermal Conductance (Roof U-value) 0.1% 0.0% 18.1 Consider Glazing Assembly Properties (U-value, SHGC, VLT) 7.3% 0.1% 0.9 Include COP of air conditioning equipment 11.4% 1% 5.4 Include Variable Speed Drives for cooling towers 9% 0% 0 Include Heat recovery on extract air 2% 0.05% 6.2 Consider Solar collectors for Hot water 17% 3.2% 25.0 Exclude Photo electric control perimeter lighting 18% 2% 7.4 Include Exterior lighting controls 0.2% 0.05% 30 Exclude Low energy lighting [CFL, T5, LEDs etc] 7% 0.12% 1.0 Include Electronic Ballast 2% Negligible 0.0 Include Sub-metering benefits 3% NA NA Consider Water efficient fittings 40% 0.35% 6.0 Include Rainwater harvesting 15% 6% 26.2 Consider Recycling onsite Sewage T plant 67% 2% 7.4 Consider Water metering NA Negligible NA Include Storm water attenuation and ground water recharge NA Minimal impact NA Include THE ENERGY SAVING POTENTIAL OF EACH MEASURE HAS BEEN CORRELATED WITH THE COST IMPACT AND THE SIMPLE PAYBACK.

8 IFC S COMMITMENT TO FINANCING GREEN BUILDINGS RETAIL $410 M SCHOOLS $140 M FINANCIAL INTERMEDIARIES $600 M OFFICES $30 M MIXED USE $300 M $ 3 BILLION HOMES $250 M HOTELS $400 M HOSPITALS $980 M 8

9 ACHIEVABLE RESOURCE EFFICIENCY THROUGH EDGE

10 EDGE CERTIFICATION STREAMLINES GREEN CRITERIA SIMPLE: just 3 parameters: water; energy; and embedded energy in materials BUSINESS-FOCUSED: software instantly estimates costs and paybacks LOW COST, ONE STOP SHOP: 30 minute decision-making; minimal additional capex when EDGE guides design; no need for consultants; REACH OUT TO AND REDUCES THE TRANSACTION COSTS NEW CLIENTS STREAMLINED ELIGIBILITY: EDGE is accepted by the Climate Bonds Initiative to issue green bonds. STRENGTHEN ITS SUSTAINABILITY CROSS SELL FROM SIMPLIFIED LEADERSHIP COMPLIANCE: IN CONSTRUCTION A loan officer TO just reviews the EDGE certificate, without additional paperwork MORTGAGE FINANCE HIGH IMPACT, EASY REPORTING: results download from software; site visit certifies as built compliance 10

11 BANKS, FUNDS, HOTELS, AND OTHER DEVELOPERS ARE TURNING TO EDGE CareMed, Lebanon Bruck, China Vinte, Mexico VBHC, India Johnson Controls, China SAMHI, India FPT, Vietnam City Express, Mexico Costa Rica, Colombia IHS, South Africa Ciputra, Indonesia Imperial, Philippines Canopus, Brazil 11

12 INVESTMENT CASE STUDY: THE EXCHANGE, GHANA Hotel project study Residential project study 12

13 ENCOURAGEMENT OF FINANCIAL INNOVATION 13

14 SCALING GREEN BONDS FOR GREEN BUILDINGS 1. Criteria EDGE is working with the Climate Bonds Initiative 2. Second Opinion The acceptance of EDGE by international bodies makes 2 nd opinion streamlined GREEN BONDS 3. Allocation process Use of EDGE certificate for proceeds allocation simplifies audit 4. Reporting EDGE software can easily produce portfolio report for the bank 14

15 GREEN BUILDING MARKET INTELLIGENCE East Europe: $40 billion opportunity in new green build, more in retrofits Latin America: $80 billion opportunity Middle East: in just 3 countries analyzed, $13 billion opportunity Africa: $16 billion opportunity East Asia: $3 trillion opportunity, driven by China South Asia: $90 billion conservative estimate, could be as high as $1 trillion CURRENT MARKET GOVERNMENT POLICIES KEY PLAYERS FINANCING FORECAST TO

16 WHAT YOU CAN DO: DIVERT EXISTING FLOWS OF FINANCE ONTO A GREEN PATH 16