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Buildings in a Carbon-Constrained World




Nov 26th
Sustainable Buildings Canada
Buildings in a carbon-
constrained economy


• The impact of building developments on climate
  change
• Emerging trends
   • Government initiatives
   • Private initiatives
• Carbon markets and their relationship to buildings
• Gap analysis – what’s needed?
The Perfect Storm…
                         Climate Change
Acid rain
 damage




                                           Air
                                          pollution



Resource
                              Water pollution
depletion
Greenhouse Gas Emissions Pie
Scope of Impact from Buildings
Life Cycle Assessment Approach
LCA of Energy Supply
                                Even source
                               energy doesn’t
                                  get it all
                                                 End use energy
                                                estimates just one
                                                 part of the story




The rest of the story is the
energy to make and move
  energy — called pre-
   combustion in LCA
Users only fill   Instant answers
in yellow cells
GHG Policy – Kyoto & Canada

•   The Kyoto Protocol - 5.2% below 1990 by 2012

•   Canada Federal
     •   Cap & Trade for large final emitters by January 1, 2010 (based on carbon
         intensity reductions)
     •   Target of 20% below 2006 levels by 2020
     •   Harper proposal (Oct 08) for a cap-and-trade system with Mexico and the US to
         take effect in 2015
•   BC Gov’t
     •   33 % emissions reduction below 2007 levels by 2020
     •   80% by 2050
     •   Carbon neutrality for it own operations by 2010
•   Ontario Gov’t
     •   6% below 1990 levels by 2014
     •   15% by 2020
     •   80% by 2050
•   Manitoba – 23% below 1990 levels by 2012
GHG Policy - United States


• US draft cap-and-trade bill to reduce emissions 80% below
  2005 levels by 2050
• All new federal buildings:
   • carbon-neutral by 2025
   • 40% improvement in efficiency within five years (2013)
   • 25% improvement in the efficiency of existing buildings by 2013
• All new buildings
   • Same as federal but deadline extended 5 years to 2018
• California – reach 1990 levels by 2020
• U.S. Supreme Court can now regulate greenhouse gases as
  pollutants
Buildings & Climate Change
Direct Initiatives

 • World Bank – Community Development Fund
 • UN – Sustainable Buildings & Construction Initiative
 • EU Directive 2002/91/EC – Energy Performance of
   Buildings
 • Climate Trust (US)
 • Philanthropic organizations (US)

 Business Sector
 • Origin Energy’s ‘Carbon Reduction Scheme’
N.American
Cap & Trade
Systems
Private Initiatives – Voluntary Carbon
Market
Carbon & $$$

• The worldwide carbon market >US$30 billion
• N.American voluntary market = $700 M/yr (2008)
• In the US, $11.8 billion was invested in 58 separate
  carbon funds as of March 2007.
• California State carbon offsets     $400 M/yr
• BC Gov’t carbon offsets       $20 M/yr
• Voluntary carbon credit prices have continued an
  upward trend with 26% increases in 2008 over 2007
  and 60% over 2006 prices.
Buildings & Climate Change
Non-profit Initiatives


 • USGBC - LCA into LEED 2009
 • Architecture 2030 – 2030 Challenge
 • PEW Centre – Meeting GHG targets through
   buildings
 • CaGBC
   • “Towards A Buildings-Centric Climate Change
     Strategy”
Canada Green building Council
“Turning the Corner” - Canada's Offset
System for Greenhouse Gases


• Offset projects must be:
   •   Real
   •   Incremental
   •   Quantified
   •   Verified
   •   Unique
• Environment Canada certifies the reductions and
  issues offset credits.
Counting Carbon:
Understanding Carbon Footprints
of Buildings
 •   Four steps that are required to
     generate offset credits:

 1. Creation of a quantification
    protocol for the project type;
 2. Registration of the project;
 3. Reporting and verification of
    reductions from a registered
    project;
 4. Certification of reductions and
    issuance of offset credits.
CaGBC & Canada Offset
System for Greenhouse Gases

• generate revenue to support green building and EE
  programs;
• provide a system for the real estate industry to off-
  set and trade carbon credits as part of CaGBC’s
  LEED Canada Initiative or Green Building
  Performance System;
• measure progress towards national and international
  climate change targets;
Barriers to Involvement of Buildings in the
Carbon Markets


• Offset projects must be:
   •   Real
   •   Incremental
   •   Quantified
   •   Verified
   •   Unique
   •   Cost-effective
Involvement of Buildings in the Carbon
Markets


• Other mechanisms for Involvement of Buildings in the Carbon
  Markets
   • Fund set up by energy providers
   • Bond mechanisms
   • “Minnesota Flip”
Industry drivers
 what do we need?

•   Policy & Incentives
•   Investments
•   Funding mechanisms (offsets, bond measures)
•   Demand Side Management (DSM)
•   Clean-energy revolution
•   Renewable Energy
•   New Technologies
Thank You

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Buildings and-carbon nov2008

  • 1. Buildings in a Carbon-Constrained World Nov 26th Sustainable Buildings Canada
  • 2. Buildings in a carbon- constrained economy • The impact of building developments on climate change • Emerging trends • Government initiatives • Private initiatives • Carbon markets and their relationship to buildings • Gap analysis – what’s needed?
  • 3. The Perfect Storm… Climate Change Acid rain damage Air pollution Resource Water pollution depletion
  • 5. Scope of Impact from Buildings
  • 7.
  • 8. LCA of Energy Supply Even source energy doesn’t get it all End use energy estimates just one part of the story The rest of the story is the energy to make and move energy — called pre- combustion in LCA
  • 9.
  • 10. Users only fill Instant answers in yellow cells
  • 11. GHG Policy – Kyoto & Canada • The Kyoto Protocol - 5.2% below 1990 by 2012 • Canada Federal • Cap & Trade for large final emitters by January 1, 2010 (based on carbon intensity reductions) • Target of 20% below 2006 levels by 2020 • Harper proposal (Oct 08) for a cap-and-trade system with Mexico and the US to take effect in 2015 • BC Gov’t • 33 % emissions reduction below 2007 levels by 2020 • 80% by 2050 • Carbon neutrality for it own operations by 2010 • Ontario Gov’t • 6% below 1990 levels by 2014 • 15% by 2020 • 80% by 2050 • Manitoba – 23% below 1990 levels by 2012
  • 12. GHG Policy - United States • US draft cap-and-trade bill to reduce emissions 80% below 2005 levels by 2050 • All new federal buildings: • carbon-neutral by 2025 • 40% improvement in efficiency within five years (2013) • 25% improvement in the efficiency of existing buildings by 2013 • All new buildings • Same as federal but deadline extended 5 years to 2018 • California – reach 1990 levels by 2020 • U.S. Supreme Court can now regulate greenhouse gases as pollutants
  • 13. Buildings & Climate Change Direct Initiatives • World Bank – Community Development Fund • UN – Sustainable Buildings & Construction Initiative • EU Directive 2002/91/EC – Energy Performance of Buildings • Climate Trust (US) • Philanthropic organizations (US) Business Sector • Origin Energy’s ‘Carbon Reduction Scheme’
  • 15. Private Initiatives – Voluntary Carbon Market
  • 16. Carbon & $$$ • The worldwide carbon market >US$30 billion • N.American voluntary market = $700 M/yr (2008) • In the US, $11.8 billion was invested in 58 separate carbon funds as of March 2007. • California State carbon offsets $400 M/yr • BC Gov’t carbon offsets $20 M/yr • Voluntary carbon credit prices have continued an upward trend with 26% increases in 2008 over 2007 and 60% over 2006 prices.
  • 17. Buildings & Climate Change Non-profit Initiatives • USGBC - LCA into LEED 2009 • Architecture 2030 – 2030 Challenge • PEW Centre – Meeting GHG targets through buildings • CaGBC • “Towards A Buildings-Centric Climate Change Strategy”
  • 19. “Turning the Corner” - Canada's Offset System for Greenhouse Gases • Offset projects must be: • Real • Incremental • Quantified • Verified • Unique • Environment Canada certifies the reductions and issues offset credits.
  • 20. Counting Carbon: Understanding Carbon Footprints of Buildings • Four steps that are required to generate offset credits: 1. Creation of a quantification protocol for the project type; 2. Registration of the project; 3. Reporting and verification of reductions from a registered project; 4. Certification of reductions and issuance of offset credits.
  • 21. CaGBC & Canada Offset System for Greenhouse Gases • generate revenue to support green building and EE programs; • provide a system for the real estate industry to off- set and trade carbon credits as part of CaGBC’s LEED Canada Initiative or Green Building Performance System; • measure progress towards national and international climate change targets;
  • 22. Barriers to Involvement of Buildings in the Carbon Markets • Offset projects must be: • Real • Incremental • Quantified • Verified • Unique • Cost-effective
  • 23. Involvement of Buildings in the Carbon Markets • Other mechanisms for Involvement of Buildings in the Carbon Markets • Fund set up by energy providers • Bond mechanisms • “Minnesota Flip”
  • 24. Industry drivers what do we need? • Policy & Incentives • Investments • Funding mechanisms (offsets, bond measures) • Demand Side Management (DSM) • Clean-energy revolution • Renewable Energy • New Technologies