How Construction Can Profit From Carbon

In our last newsletter, “first steps: what is the construction’s carbon footprint?” we presented some high-level benefits of including carbon footprint in the construction industry’s metrics of success.   Most people in construction think of carbon as a component of the green construction movement.  This preconception is not exactly true, because green construction isn’t only about carbon footprint, nor is carbon footprint only about green construction.  The overlap between the two is where we see a large opportunity.

The benefits of green construction are becoming apparent.  One benefit being watched closely is increased profits as a result of green buildings.  In 2008 in Las Vegas, a group of architects surveyed employees within buildings that were green versus buildings that hadn’t been through a green certification process.  The survey found that employee productivity is higher by 1 percent to 2 percent, conservatively, by working in a green building, which translates directly into the bottom-line.  The group was able to gather enough data to conclude this because of the local government’s decision to exempt green buildings from certain taxes, prompting a boom in green building construction.
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The companies involved in the construction of green buildings directly benefit if they offer products that meet increasingly strict guidelines of the various evolving standards for green buildings.  Examples of green products – who notably were all GAIA Award recipients at last year’s Big 5 – that will be exhibited at this year’s Big 5 include:

• Solasteel (coating metal sheeting for roofs/walls) 
• Fermacell Gypsum Fibre Boards
• MS Elastic adhesives
• Powerglaz PV panel laminating
• Plastbau stay-in-place insulating concrete forming system for joists
• Port-a-cool portable evaporative cooling systems
• Astec brand ceramic insulating coatings
• Parasol duct air conditioning and handling systems

Energy and water savings are two important drivers of adopting green construction products and processes.  Both of these savings can directly be translated into reductions greenhouse gas emissions.

A recent estimate of the embodied greenhouse gas emissions associated with construction is 300 kg of CO₂e per square meter of built up area.  To reduce this figure to 200 kg, a portfolio of green building methods could be employed as follows:

• Concrete with fly ash (not available yet in UAE at scale) = 30 kg reduction
• Recycled steel = 20 kg reduction
• Insulated enclosures = 10 kg reduction
• Fibreboard= 10 kg reduction
• Recycling of waste = 5 kg reduction
• Renewable fuels for transport and onsite = 25 kg reduction

These alternative, carbon-efficient methods and materials can make a significant difference in emissions.  Measurement of reductions in carbon emissions creates an immediate, double benefit: points toward green building certification, and a new benefit for customers.

A second area of opportunity is new revenues by generating carbon credits from implementing greener construction products and methods.  Renewable energy, switching to alternative fuels, using novel cooling and heating systems, wastewater treatment and reuse, and waste management are all potential sources of credits.

In the next edition of this newsletter, we will present more on the second profit motive.  Keep in mind that these types of projects make most sense after a player in construction has gone beyond “business as usual” and worked steadfastly on implementing those green products and services that increasingly make compelling economic sense.