Greening buildings in bad times a hard sell

Source : Straits Times - 30 Apr 2009

EVEN as it topped a global list published this week of cities with the best infrastructure, and ranks reasonably in quality of life, Singapore has barely begun to make its buildings energy-efficient. It is one contradiction that can be fixed with policy measures and private sector cooperation. The second Building and Construction Authority (BCA) green building master plan, unveiled on Monday, could achieve that - if incentives and injunctions work. The first plan, begun in 2006, made only 1 per cent of buildings energy-efficient, despite what the BCA described as a ’sharp increase’ in buildings meeting its Green Mark last year.

Aiming to render 80 per cent of buildings green by 2030, the new plan shifts the emphasis from new to existing buildings. It is a tactical refocusing that could have wider potential impact, since these buildings account for a third of national electricity consumption. The BCA will offer $100 million in government co-funding to retrofit such buildings as shopping malls, hotels, offices and hospitals so they can cut their energy costs by at least 20 per cent. It estimates energy savings at $120 million a year, which is not a bad rate of return on investment. The critical question is, are there enough building owners who are in a position to take advantage of the incentive? Many are expecting to collect less rent as business slows further.

Developers of new buildings face a similar constraint. Energy efficiency will likely not be their first priority even if they are bold enough to begin construction in a recession. Like owners of existing buildings, they will want the BCA to indicate long if not short term gains. The plan will award 1 or 2 per cent bonus gross floor area, capped at 2,500 sq m or 5,000 sq m, if buildings reduce energy consumption by 25 or 30 per cent. Developers will have to go to the drawing board, literally, to build green technology into the designs. Again, how many can BCA convince with the green carrot? Perhaps because of the economic climate, only in several ’strategic growth areas’ are higher energy standards set (as land sales conditions).

National Development Minister Mah Bow Tan has pointed out that sustainable development efforts and tackling economic challenges ‘are not mutually exclusive’. With deeper pockets, the Government can and will take the lead, by greening existing and new public buildings. As soon as the economy recovers, the private sector will be more willing and able to follow that lead. It will do well to help Singapore maintain the best infrastructure and achieve among the highest and most sustainable liveability standards.