Buildings go green to cut costs amid economic downturn

Source : Channel NewsAsia – 5 May 2009

One way to cut costs amid the current downturn is to make buildings more eco-friendly and efficient. Experts said this can save as much as a 20 per cent in energy bills.
And for those worried about higher investments, there are initiatives that can cover up to 35 per cent of such costs.

Demand for ‘green’ buildings has grown amid the current downturn. Environmentally-conscious consumers are increasingly demanding more eco-friendly homes.

The Building and Construction Authority (BCA) has seen applications for its green mark certification jump from 17 in 2005 to over 100 in 2008. So far in 2009, there are some 120 buildings waiting for certification.

The BCA Green Mark Scheme was launched in January 2005 to push Singapore’s construction industry to build more environmentally friendly buildings. Experts said even old buildings can be retrofitted to be green.

“I suppose the economic crisis will affect the demand for green buildings, but… the focus will be on retrofitting, so we are thinking there will be a resurgence in retrofitting,” said Tan Tian Chong, director of Technology Development at BCA.

The BCA is pumping funds into retrofitting development, and as a result is expecting retrofitting projects to generate over S$1 billion by 2020.

Such retrofitting – which includes modifications such as air-conditioning and lighting systems – will need 3 to 4 years before showing returns on the investment. The BCA said with the new incentives, the time frame could be further reduced by one third.

Currently, only one per cent of completed buildings in Singapore are certified green. But by 2030, the BCA is targeting to bring this to 80 per cent.

To encourage developers to go green for new projects, the BCA will be offering additional gross floor area for projects that qualify.

New green buildings will take 6 to 8 years to show returns on investment, and could present up to 30 per cent in energy savings.