In the great urban jungle that has come to symbolise India’s leading metros, the first green shoots are visible. It may look tentative at the moment, but bodes well for the future. In its latest findings released recently, the US Green Building Council (USGBC) has concluded that 833 million sq ft of green building space in India is LEED-certified.

USGBC's Leadership in Energy & Environmental Design (LEED) green building certification system is rated one of the world's foremost programmes for the design, construction, maintenance and operations of green buildings, a media statement issued by the council claimed. According to it, every day, 1.7 million sq ft of space is certified using LEED.

The USGBC’s `LEED in Motion: India report,’ says nine out of ten industry executives in India anticipate LEED-related work to increase between now and 2019. Indian companies are using LEED to save energy, water and other precious resources.

Increasingly, realtors and investors have identified the need to reduce usage of environmentally hazardous substances in buildings. The latest construction equipment and techniques are more environment-friendly and technologically sound, allowing for increased productivity. In addition, new building materials, which are lighter and environment-friendly, are also being put to use.

Says Neeraj Bansal, partner and head, real estate and construction, KPMG in India, “The rising awareness of green buildings in India is an encouraging development. Indian developers are gradually realising the benefits of constructing energy efficient buildings. It is also important from the perspective of building environmentally sustainable cities — an important pillar in the lead up to building 100 smart cities. The government should further encourage adoption of green buildings by developers by offering higher FSI/FAR incentives and raising awareness.”

``Not surprisingly,’’ says Rohit Mohan, head of design, Emaar MGF Land Ltd, ``There is increasing demand for projects with eco-friendly features. As companies work towards expanding their footprints in India, they are also looking at procuring spaces in LEED-certified commercial buildings. These buildings not only have a significant lower environmental footprint because of their energy and resource-efficient design, but also help inhabitants with lower operational costs.’’ His company is developing two IT office spaces — Digital Greens and Commerce Park as per LEED guidelines in Gurgaon, in addition to having developed a green residential project in the Common Wealth Games Village, New Delhi.

More companies looking for office space say green is much more than an environmental imperative or social responsibility cause – it’s an essential strategy for savvy businesses looking to differentiate and grow the bottom line. Nowhere is this as finely underlined as in the construction business. Points out Aman Agarwal, director, KV Developers: ``LEED ratings are currently playing a pivotal role in makeover of Indian real estate. It is helping the sector to grow while it follows stringent norms and deliver infrastructure that is at par with global standards. LEED-certified green buildings result in slashing water and electricity bill by up to 35-40 per cent and also incur lower operational costs.’’

There is good reason to look and plan ahead. According to McKinsey’s `India’s Urban Awakening’ report, the number of million-person cities will grow from 42 to 68 by 2030. Growing urban population and the subsequent need for housing and commercial buildings are driving builders to turn to sustainable solutions. Explains Gaurang Pandya, managing director, Carrier Air-conditioning and Refrigeration Ltd: ``in real estate, sustainability is not limited to just energy conservation, but includes resource usage, impact on the surrounding environment and working conditions for tenants. This concern has led to the development of green buildings.’’

An Indian Green Building Council (IGBC) assessment says the country has 398 green-rated buildings and a green-building footprint of 1.63 billion sq ft. The green building concept integrates many interests and aspects of sustainability. It emphasises the reduction of environmental impact through a holistic approach of combining land and building uses with construction strategies.

In terms of saving energy in buildings, the use of intelligent building management system (IBMS) is a steadily growing trend. Industry sources say around 15 to 20 per cent of businesses are opting for IBMS during the building design process. By combining an understanding of customer needs with required technology, these systems can drastically reduce the building’s energy consumption.

Adds Pandya: ``We have the technology to improve energy-efficiency of buildings by 30 per cent. Doing so would have an internal rate of return of 28.6 per cent over a 10-year period – that’s four times better than average corporate bond yields and double the returns seen by high-performing venture capital firms. Most green building options cost the same or only slightly higher than conventional alternatives, yet they deliver significant energy savings. For instance, new green buildings decrease operating costs by 8 per cent over one year, and 15 per cent over five years.’’

The potential for saving turns positively critical when you consider that the cost of energy is increasing and global demand is becoming virtually, insatiable. The International Energy Agency predicts that energy prices will rise by a further 17 per cent over the next two decades. Improved energy consumption will not only provide immediate cost savings but also help to safeguard against energy price hikes.

Industry insiders say improved health and productivity benefits are driving green buildings today as compared to three years ago—55 per cent of firms rate greater health and well being as the social reasons for building green (tied with encouraging sustainable business practices), up from 29 per cent in 2008.

Says Pandya: ``Though energy savings are by far the most critical environmental reason to go green, there are other important environmental factors as well like water-use reduction, lower greenhouse gas emissions and natural resource conservation.’’

Such is the impact of this greening that some developers are even suggesting a rehaul of the rating system itself. Argues Anil Mithas, CMD, Unnati Fortune Group, “India has two competing systems to rate how green a building really is. There is the energy compliance certificate issued by the IGBC or LEED India and Green Rating for Integrated Habitat Assessment (GRIHA). The former is benchmarked globally while the latter is homegrown. We require a neutral, third party audit to help define eco-friendly homes, to inform how environmentally sound a building is, providing clarity to what extent green components have been incorporated and which sustainable principles and practices have been employed. This is where green building certifications come in. Rating or certifying a green building helps to remove that subjectivity and informs occupants and the public at large about the environmental benefits of a property, while disclosing additional innovation and effort the developer has invested to achieve a high performance building. It ensures better communication of what those high performance features are and helps differentiate the building in the market.’’ With such clarity among promoters, buildings are only going to get greener.

- by Ranjit Bhushan

Source :- Financial Chronicle