Of late, the growth statistics of green building industry has been witnessing new heights of success mainly on the cusp of soaring environmental concerns prevalent across the globe. Experts reveal that more & more countries are recognizing the crucial role the building & construction sector plays in climate change mitigation and adaptation processes – a factor impelling green building industry to achieve a mainstream status. Reports reveal that green buildings are ideal for a country’s economic growth as they use minimum water and energy resources. In fact, reduced water and energy usage has been identified as the top environmental issue that has driven the green building construction. As per authentic reports, the green construction spending to have recorded a mammoth valuation of over USD 220 billion in 2018. Thus, with the globe treading on the path of sustainability, green building industry in the coming years is expected to garner lucrative growth.
“Green buildings provide $6 billion in benefits to health and climate, reports a Harvard study”
According to the study report, the experts at the Harvard University examined a set of certified green buildings over 16-year period in six countries including China, the US, Brazil, India, Germany, and Turkey. The study found that the green building projects saved several billions of dollars in energy costs. In fact, globally 33,000 kilo tons of carbon emissions were avoided which can be gauged equivalent to over 7 million fewer passenger cars on the road for a year.
Yet another study reveals that by embracing green building technology, developers could save over 50% of initial costs involved in construction buildings. These instances are clear indication of technological improvements cutting down capital costs and green building initiatives improving efficiency. With the green concept providing energy and cost saving momentum, the regional landscape of global green building industry is set to gain remarkable traction in the countries setting ambitious environmental targets.
China to have fair investment opportunities
China is making rapid progress in the green building industry and it appears that the region is set to cement its place among the top markets for lucrative proceeds. Given the fact that China tops in GHG emissions and the construction industry is one of the fastest growing sector of the economy, the future of buildings and the future of sustainability is all set to go hand in hand. The market potential is anticipated to be so big that not only the leading vendors but even the well-established American companies that already have their shares in U.S. green building industry will be securing their stance from investing in this region. If reports are to be believed, half of all the new building construction in the world would be built in China in the coming ten years– a fact vividly depicting the huge regional potential.
With such a massive construction growth potential, it is quite overt that China’s low carbon footprints future depends extensively on green buildings. Latest data reveals that there are over 520 million square meters of green building space in 336 cities in China. The data goes on to validate that the country is taking steps to move swiftly toward a cleaner economy. In the backdrop of this scenario, China’s government has announced a goal to achieve 50% commercial green building certification on all new constructed buildings and to upgrade over 60% of the existing residential buildings with energy efficient systems by 2020. Indeed, if the target is met, China will account for half of the world’s green building floor space by 2020. Not only this, but in its 13th Five-Year-Plan (FYP), China called for an increase in energy efficiency and conservation targets, environmental-friendly technology, and environmental protection enterprises. China’s active participation in the Paris Agreement 2015, has been another testament to the fact that it has been taking every opportunity to mitigate carbon footprints, while parallelly achieving economic growth.
According to a report - China Green Building of 2017, the green building concept has been acknowledged not only by the local governments but also by more & more real-estate and property developers. This fact has already made China the second largest market for the LEED-certified projects (Leadership in Energy & Environmental Design) after the United States. On this note, it is imperative to mention that in the year 2005, green buildings were only about 2% of the commercial construction in the US, however, in 2017 they were much nearer to 50%. Industry analysts speculate China, with its impressive adoption rate of green technology, to follow a similar trend in the years ahead.
Quite unsurprisingly, China, with its proactive plans and commitment toward energy efficiency, plays a central role in flourishing green building industry size, which, in turn, has resulted into growing interests of many companies around the globe.
The aforesaid trends have clearly set the stage for potential stakeholders to strategize their investment maneuvers in green building industry. Besides China & US, India, Kenya, Germany, and Brazil are also setting the ground lucrative by promoting construction & adoption of green technologies. The industry is further driven by participation of Silicon Valley giants such as Apple, Google, Starbucks, Facebook and Nike committing toward using 100% renewable energy for their operations and green building concept for their technological centers. With such favorable landscape in tandem with growing governmental initiatives to uptake environment friendly notions, the green building industry is undoubtedly poised to chart a profitable growth graph in the ensuing years.