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How green finance and ESG advance sustainable building

Money talks—and today, when it comes to the building industry, that money conversation frequently involves the worlds of green finance and ESG. What is green finance? How does it work? Why is it becoming so important to building industry leaders? Those are some of the questions we address in USGBC’s two-part podcast series, featuring GRESB experts Chris Pyke and Sarah Welton.

In Part 1, the definitions and applicability of green finance are discussed. The conversation also features some tips on where to learn more about this rapidly growing source of funding for today’s green building industry. Welton believes that at the rate our world is looking to sustainable solutions, even the term “green finance” will be old-fashioned before we know it.

“When we talk about green finance,” says Welton, “I think in a few years we’re going to drop the ‘green.’ It’s just going to be the way we do business.” Before we reach that point, though, Welton and Pyke share how you can explore and leverage green finance options.

Part 2 explores how ESG and green finance complement each other and the action of green building, and why their relationship is so important to a financial community looking to lock in returns on its investments.

“ESG is not an end in itself. It is a tool…a critical context to how a company is governed, how it addresses social issues and how it performs on environmental issues,” explains Pyke. “What’s going on at the company and fund enables and requires action [in] buildings and spaces. In turn, buildings and spaces must deliver the performance so that companies and funds can achieve their commitments to their investors.”

Breaking down abstract topics into concrete examples, Pyke and Welton describe how relevant ESG and green finance aspects are to all who participate in green building. Both podcasts also share thoughts as to how holistic rating systems such as LEED play an important role in the transformation of our built environment.

 

 

The social benefits of lowering carbon

The United Nations Department of Economic and Social Affairs estimates that by 2050, 68% of the world’s population will live in urban environments. As the song goes, “we are living in a material world,” and much of this urban fabric is shaped by those of us in the built environment sector.

A large part of my professional role is to reduce the carbon footprint of the built environment in both operational and embodied carbon. Architecture 2030 research shows that the built environment is responsible for about 42% of annual global CO2 emissions. There are exciting opportunities and synergies for our industry to innovate and create healthier jobs and spaces as we all race toward our collective net zero, or even net positive, carbon goals.

Operational and embodied carbon

Operational carbon strategies are focused on lowering energy use intensity (EUI) and carbon intensity through efficient building systems, high-performance facades, behavioral changes and renewable energy generation. Decarbonization of our utility grid will also play a critical role in reducing the CO2 emissions of the built environment. Creating all-electric buildings will further reduce our dependence on fossil fuels (used for space and water heating, as well as commercial cooking needs) and is an additional key step toward the decarbonization of our building stock.

 

 

LEED recertification helps local governments continuously improve

Achieving LEED for Cities and Communities certification is a major accomplishment, one marked by plaque presentations with mayors and council, community receptions and more. This certification recognizes a community’s leadership in sustainability and provides evidence of the impact of policies, programs and investments. More than 130 jurisdictions have reached this milestone, and now recertification has become a top priority for many, with 19 already recertified.

If the initial certification provides a baseline assessment for a city, town or county, recertification offers the benefit of tracking progress over time, to ensure the actions that have been implemented are moving the needle on community conditions. Two recently recertified local governments shared why recertification is important and how they are institutionalizing LEED for Cities and Communities.

 

 

Educators: Earn a LEED credential and help prepare your students for green careers

The LEED Green Associate Exam Prep training for teachers includes instruction, exam registration and class materials.

Today’s students have the opportunity to pursue jobs that will advance sustainability, equity, technology and resilience. Today’s teachers are eager to engage students in experiences that will equip them for the first steps of their career journeys. USGBC and its partners are ready to support both teachers and students in this pursuit of sustainability knowledge and green careers.

To date, USGBC and its partners—sponsors American Technical Publishers and instructor Heather McCombs—have hosted four successful offerings of a LEED Green Associate exam prep course for teachers, a professional development experience that equips teachers to designate themselves as leaders in green building knowledge and helps them to prepare their students for a green building career.

We are excited to be able to offer this exam prep training again in the winter of 2024 and again in the spring:

LEED Green Associate Exam Prep-Take-Teach course

When: Tuesdays evenings, Jan. 9–Feb. 27 or April 30–June 18

Where: Online Zoom sessions

Cost: $205

During our 2024 sessions, teachers, professors and school support staff are invited to participate in a LEED Green Associate exam prep course that will also register them to take the exam and provide green building materials that they can use in their classes. The “Exam Prep-Take-Teach” program includes learning, peer exchange and preparation for the leading green building industry credential. What’s more, the cost of the program is half the market rate.

With the solid foundation of green building knowledge that studying for the LEED Green Associate provides, teachers will be adept at weaving clean economy concepts into their instruction. Teachers are encouraged to use Perkins V funding to take this professional development course, and once completed, to showcase their credential and begin engaging students with green building content.

https://www.usgbc.org/articles/educators-earn-leed-credential-and-help-prepare-your-students-green-careers

 

Gauging climate action progress: Key findings from the U.N. Global Stocktake report

The draft report outlines progress since the 2015 Paris Agreement.

The United Nations Framework Convention on Climate Change released its draft synthesis report for the first Global Stocktake on Sept. 8. The report is the first comprehensive assessment of collective progress on climate action since adopting the Paris Agreement in 2015. Its release comes on the heels of the most recent Intergovernmental Panel on Climate Change report, which described “widespread and rapid changes” occurring worldwide.

Key insights

The Global Stocktake report issues a stark review based on two years of data collection and stakeholder insights. Here are the key emerging messages:

  1. The Paris Agreement is driving near-universal climate action, but far more ambition is required on all fronts and by all actors. More ambitious mitigation targets, adaptation goals, and efforts to avert, minimize and address loss and damage are urgently needed.
  2. The global community is not on track to reduce emissions to the level needed to limit global temperature rise below 1.5 C (2.7 F). The window of opportunity to bridge this 20.3–23.9 GT CO2e divide is rapidly narrowing.
  3. Achieving the long-term goals of the Paris Agreement calls for systems transformations at all scales. Systems transformations should mainstream climate resilience and low-carbon development across sectors.
  4. By nature, systems transformations require a whole-of-society approach, engaging cities, states, financial institutions, the private sector and others.
  5. Renewable energy should be massively scaled up while phasing out all unabated fossil fuels. Critical elements of a just energy transition—beyond inclusivity and equity—include electrification, energy efficiency and energy storage.
  6. The global community must unlock and redeploy trillions of dollars in climate finance to enable climate action in developing countries.

Potential solutions

While the report offers a sobering review of climate action’s serious shortcomings, it also highlights the solutions that hold the greatest promise. Among those most relevant to the work of USGBC and the global green buildings community are

  • Pursuing low-carbon energy sources, efficiency gains and electrification for buildings.
  • Using low-carbon construction materials.
  • Leveraging nature-based solutions to sequester carbon and boost resilience in cities.
  • Implementing smart urban planning to reduce and manage waste.

https://www.usgbc.org/articles/gauging-climate-action-progress-key-findings-un-global-stocktake-report

Decarbonization at Greenbuild 2024

Decarbonization, defined as the removal of greenhouse gas production from the global economy, has become an imperative, with buildings identified as a critical sector to address. At USGBC, we are bringing all our tools and resources to meet this challenge, as are nations, companies, and countless green professionals and advocates.

As the global green building community’s top space for learning, networking and sharing insights, Greenbuild 2024, “Built to Scale,” will offer more than 100 sessions on the most critical topics in the industry. The conference will take place Nov. 12-15 this year in Philadelphia.

https://www.usgbc.org/articles/decarbonization-greenbuild-2024

Creating a drought-resistant oasis through community partnerships and native landscaping

The landscape was transformed at one elementary school through the use of native plants.

Each year, the Center for Green Schools Leaders in Sustainability Fellowship program selects a small group of school district sustainability staff from across the country to meet to connect and collaborate on common goals, challenges and strategies.

Melissa Carroll, resource energy manager for the Thompson School District in Loveland, Colorado, participated in the 2022–2023 fellowship. Through this program, she received support and feedback from the group regarding outreach and education strategies and shared lessons learned from programs such as the turf transformation project at Cottonwood Plains Elementary School.

Solving a local issue

Drought conditions in Colorado are common, and water costs are increasing each year—something Thompson School District is seeking to address through turf (or grass) conversions to native plantings throughout their school grounds. With design support from Denver Botanic Gardens; funding from Northern Water and Colorado Water Conservation Board; and community support from Cottonwood’s parent-teacher organization, in summer 2023, the Cottonwood Plains Elementary School replaced approximately 3,000 square feet of irrigated Kentucky bluegrass with low-water native landscaping that included over 300 plants, walking paths and sitting rocks.

The native plants can withstand drought conditions, while also offering year-round color and providing local habitats for hummingbirds and butterflies. The Thompson School District intends for this space to provide the students a way to connect with nature and a space for the community to learn about landscaping opportunities suitable for the local climate. Teachers are encouraged to use this space to enhance classroom learning on all topics, from biology to art to arithmetic.

Enhancing building decarbonization through performance monitoring

BEE Incorporations shares how real-time performance monitoring can help projects reach decarbonization goals.

Feature image: The LEED Platinum One Museum Place in Shanghai, China. Photo courtesy of BEE Incorporations.

Feeling the effects of climate change and its devastating impacts on the environment, economies and societies, the world has recognized the urgent need to address the carbon emissions responsible for this crisis. Nations, corporations and communities are increasingly adopting net zero targets, aiming to balance their carbon emissions with carbon removal or offsetting measures. One crucial aspect of this endeavor is building decarbonization, where we focus on transitioning the construction and operation of buildings to low- or zero-carbon emissions.

The building sector contributes to approximately 40% of total CO2 emissions worldwide, making it a significant driver of climate change. As urbanization continues to rise, the demand for energy-efficient, eco-friendly buildings is surging, necessitating a shift toward more sustainable construction and operation practices.

The role of performance monitoring

Building performance monitoring is a cornerstone of successful building decarbonization efforts. It involves consistently tracking and analyzing various aspects of a building’s operation, including energy consumption, emissions and overall operational efficiency. Performance monitoring allows us to identify areas where buildings may be operating inefficiently.

At BEE Incorporations, we have gained significant experience in real-time monitoring through our smart building performance monitoring system. It is integrated with buildings and uses an ESG reporting tool to share real-time insights into indoor environmental quality, energy, water data and more. This type of system helps businesses minimize their environmental footprint and make informed sustainability decisions.

With information on energy usage patterns, facilities teams can pinpoint specific systems or behaviors that contribute to excess energy consumption. This real-time feedback loop promptly addresses deviations from sustainability goals, whether from human behavior or system malfunctions. It also helps prevent long-term inefficiencies by detecting issues that could lead to increased energy consumption or emissions over time.

https://www.usgbc.org/articles/enhancing-building-decarbonization-through-performance-monitoring

EPA opens applications for $4.3 billion in Climate Pollution Reduction Grants for implementation

The EPA has also released program guidance.

The Environmental Protection Agency (EPA) released program guidance and opened applications for states and local governments to apply for $4.3 billion in competitive funding as part of the Climate Pollution Reduction Grant (CPRG) program. These funds are to help governments implement climate plans.

This follows the release of $250 million of planning grants under the CPRG. These funds have mostly made their way to states, local governments, territories and tribes to update or create climate action plans.

Implementation grants are only available to entities that received funding for planning grants or were covered by the scope of the Priority Climate Action Plan (PCAP) developed by a lead regional or state organization. For example, if a city falls within a metro area that received planning grants, it is eligible to apply for implementation grants if its proposal is consistent with measures or actions identified in the metro area’s PCAP. Proposals for implementation grants must specifically implement measures outlined in a PCAP.

Funding details

The implementation grants will be split into two competitions: a general competition for states and local governments and a competition for tribes and territories. For the general competition, the EPA expects individual grants to be between $2 million and $500 million, with applications due April 1, 2024. The EPA requests that prospective applicants submit a letter of intent preceding their application by February 1, 2024. The program guidance highlights key implementation grant goals, including:

  • Reducing significant GHG emissions by 2030 and beyond.
  • Implementing programs and measures that will significantly reduce hazardous air pollutants in low-income and disadvantaged communities.
  • Leveraging CPRG funding with other federal funding opportunities to maximize emissions reduction. This includes the expanded suite of energy efficiency tax credits.
  • Developing replicable policies and programs that can be “scaled up” across multiple jurisdictions.

The EPA anticipates that proposals will encompass one or more major sectors responsible for significant GHG emissions, including “industry, electric power, transportation, commercial and residential buildings, agriculture/natural and working lands, and waste and materials management.” The EPA says that implementation grants can be used either for new programs/measures solely funded by CPRG funding, expansion of an existing program that will be supplemented by CPRG funding or a new program/measure that already has partial funding but needs additional financial support.

 

Learn how LEED for Cities and Communities evolves to further advance the U.N. SDGs.

Learn how LEED for Cities and Communities evolves to further advance the U.N. SDGs.

World leaders convene in New York City this week for the 78th session of the United Nations General Assembly. This year serves as the halfway point to the Sustainable Development Goals (SDGs) target year of 2030, and it is anticipated that ushering in a new phase of accelerated and transformative action will be the focus.

As a U.N. framework, the SDGs were set at the nation-state level. While global in their ambition, achievement of the 17 goals will depend on local action and leadership. All of the SDGs have targets that are directly or indirectly related to the daily work of local and regional governments and local stakeholders.

To support local leaders and advance implementation of the SDGs, we have updated our USGBC report, “Tracking Progress on Global Goals,” to reflect newly adopted improvements to the LEED for Cities and Communities rating system. With updates released this summer, the rating system advances critical content areas, including biodiversity, heat mitigation, public health, economic development, location efficiency, pedestrian and bicycle safety, mobility policies, responsible procurement, net zero, carbon neutrality and more.

This alignment report is an ongoing effort to crosswalk or translate the SDGs to the categories, credits and prerequisites within the LEED for Cities and Communities rating system. In doing so, we intend to help local leaders see how their investment in action on the frontlines contribute to progress and move the needle on outcomes at an even larger scale.