GREEN BUILDINGS IN INDIA & SOUTHEAST ASIA
Building Sector in South Asia Benefits from Going Green
April 15, 2010 (World Resources Institute)
"'Green' building retrofits or new construction can protect the Asian real estate sector from increasing environmental risks emerging in the region, according to a new report…
"…[Surveying Risk, Building Opportunity] assesses the commercial building sector in India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam and the financial impacts it could face from energy insecurity, water scarcity and climate change. The report finds that green building investments can alleviate these risks in addition to achieving a positive return for building owners in a few years…"
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"…[E]lectricity prices are expected to increase as demand continues to rise, particularly in cities with weak electricity infrastructure. Most of the energy used by commercial buildings in the region goes toward air conditioning and lighting…The region’s water constraints will also cause utility costs to rise…India [may] exhaust all available freshwater supplies by 2050…The other focus countries will see localized water scarcity near major cities…In Vietnam, the amount of freshwater consumed has tripled and in Malaysia and India it has doubled in the last two decades…Major Indian cities already see power outages weekly…
"[F]or a typical commercial building (300,000 square feet) in Mumbai, a 1 percent increase in electricity costs could increase annual operating costs by approximately Rs 2.8 million, or around USD 60,000…Building owners could protect themselves from energy price hikes by investing in energy [efficiency]…[A] 10 percent increase in energy costs would only increase operating costs in a green building by as little as only half as much compared to a typical building."
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"As the region sees increased rains, flooding, storms and landslides, weather-related insurance premiums for buildings could also increase. Jakarta, where 40 percent of land is below sea level, is especially vulnerable…Building owners can protect themselves from damage caused by extreme weather events by examining climate risks for prospective sites even before purchasing land. Buildings can be designed to minimize damage from floods and storms…
"Though green buildings are gaining momentum in the region, barriers to growth exist, such as the availability of local green building materials and expertise. The report recommends that governments create appropriate market incentives and institute stricter building codes to enable the green building movement to flourish in South and Southeast Asia."
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