Survey Shows That Green Construction Cost May Be Overestimated

Construction and property professionals are overestimating green construction costs by 300%, a new survey has found.

The study by the World Business Council for Sustainable Development (WBCSD), "Energy Efficiency in Buildings: Business Realities and Opportunities," is the first phase of the organization's three-year initiative to pinpoint the environmental footprint of buildings and promote building zero net energy use. Lafarge and United Technologies Corp. are co-chairing the project.

Respondents to the global survey guessed that implementing green building practices boosted costs by 17 percent when in reality, the premium is closer to roughly 5 percent. Respondents pegged building-related greenhouse gas emissions at 19 percent of the world total, half of the actual 40 percent.

That figure is expected to grow, particularly in developing nations such as China and India. The Department of Energy, for instance, predicts electricity consumption in India could grow by nearly 700 percent through 2030.

"The world is undergoing rapid transformation, with strong demographic and economic growth driving a move towards urbanization on an unprecedented scale," said Bruno Lafont, Lafarge's chairman and CEO. "We as industry leaders have a responsibility to ensure that this growth is achieved in a sustainable manner."

The study found that only 5 percent of energy used for interior lighting actually produces light while the remaining 95 percent of energy is wasted. The building envelope is critical to energy efficiency while green building techniques could increase the life of a building.