BUILDING RATINGS

&

CARBON TRADING

A case of Commercial Buildings in India

Image Courtesy: Amit Kulkarni

N E E D for the study

Electricity Consumption in India Commercial Space In India
Others 7% Industry 46% Agriculture 18%
Source : ECO III project, USAID

Buildings 33%

With improving Energy Efficiency in Buildings 162 Million Tons of Co2 per year can be reduced Building Footprint

Source : BEE Source : BEE

Water 25%

Energy 40%

Resources 40%
Source : UNEP SBCI

Source : UNEP SBCI

Source: Dr.Ajay Mathur, Energy efficiency in Buildings in India- An overview, 2nd meeting of the Indo-German energy forum, Bureau of Energy Efficiency, Ministry of Power, India, December, 2007 International Energy Agency, World Energy Outlook 2004, pp. 49899

N E E D for the study

Three major ways to reduce GHG emissions: 1. Reducing energy use 2. Replacing fossil fuels with renewable & 3. Increasing energy efficiency Measures 1. Control & Regulatory Instruments
1.
Source : IPCC

Source : IPCC

2.

Normative 1. Appliance standards 2. Building codes Informative 1. Mandatory audits 2. Mandatory labeling and certification programs Energy efficiency certificate schemes Ex : Tradable certificates for energy savings (white certificates) Kyoto flexibility mechanisms Ex: Joint Implementation (JI) and Clean Development Mechanisms (CDM) Taxation Tax exemptions/reductions Voluntary certification and labelling
Ex : GRIHA, LEED/IGBC, NBSRP, Eco Housing, etc.,

2. Economic and market-based instruments

1. 2. 1. 2. 1.

3. Fiscal instruments and incentives 4. Support, information and voluntary action

Source : Assessment of policy instruments for reducing GHG emissions from buildings, Report for the UNEP-Sustainable Buildings and construction initiative, Central European University, Sonja Koeppel, Diana Urga-Vorsatz, September 2007. Sims et.all, 2007: Energy supply. In Climate Change 2007: Mitigation, WG III, IPCCC

AIM
To study Performance Based Rating and its potential for achieving ENERGY

EFFICIENCY and CARBON TRADING for Commercial Buildings in India

Research QUESTION
Why is Performance Based Rating needed inspite of existing ratings like GRIHA & LEED in India?
Can the existing benchmark act as an baseline to develop carbon trading

OBJECTIVES
1. Study in detail about the existing building rating programs GRIHA & LEED . 2. Study the performance based rating in India i.e National Buildings Star Rating Program(NBSRP) and study in brief about CCM 3. Study the existing carbon trading in commercial building sector in India and other countries. 4. To find an existing case with a combination of building ratings and emission trading scheme and identify potential strategies to implement one such mechanism in India.

S C O P E & L I M I TAT I O N S
1. It is a research based study. 2. Only the energy section in GRIHA & LEED ratings would be dealt in further detail. 3. It focuses much on the operational energy rather than embodied energy.

RATINGS

TRADING
US

RATINGS + TRADING
Europe Australia

RATINGS & ETS across the world

ENERGY STAR
ENERGY CONCEPT ADVISOR

NABERS
Singapore

ENERGY SMART
India China

India

NBSRP

UK

US

Hong Kong

France

BREEAM
Canada

LEED
US & Canada

BEAM
Australia

HQE
Japan

GRIHA
India China

MOHURD
Germany

SBTOOL

GREEN GLOBES

GREEN STAR

CASBEE

LEED India

THREE STAR

GSBC

Ratings

1990

1996 1998

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
UK Japan
California

Canada

Switzerland

Tokyo

UK ETS
Australia

JVETS NSWG GAS

Cap & Trade

France

C ETS

S ETS

Tokyo ETS

Emission Trading
China

Europe

Italy

South Korea

India

EU ETS

WHITE CERTIFICATES

SK ETS

PAT

ETS

METHODOLOGY
RATINGS
Building Ratings across the world International practice

Analysis of Existing ratings in India

vs

vs

TRADING

Carbon trading in Building sector Tokyo CDM Emission Trading Schemes New South Wales
Italy & France

Potential integration of building ratings and carbon trading in commercial building in India

China

RATINGS + TRADING

RATINGS

I. Support, information and voluntary action

Voluntary Certification & Labelling

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Existing Building RATINGS across the world

Source : Reed Richard, Bilos Anita, Wilkinson and Karl-WERNER Schulte, International Comparison of Sustainable Rating Tools

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Type of Building RATINGS

Intent/Prescriptive Performance Outcome based

OPTIO N

OPTIO N

OPTIO N

INDIA

UNITED STATES

AUSTRALIA

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ANALYSIS of L E E D , G R I H A & N B S R P
LEED India
Abbreviation Leadership in Energy and Environmental Design Year of Launch 2005 Organization IGBC (Indian Green Building Council) Rating Versions LEED India NC (for new construction & renovation) LEED India Core & Shell IGBC Green Factory Building IGBC Green Homes IGBC Green Townships IGBC Green SEZ

GRIHA

NBSRP

Green Rating for Integrated Habitat National Building Star Rating Program Assessment

2005
ADaRSH (Association for Development and Research on Sustainable Habitats) SVAGRIHA

2009
BEE (Bureau of Energy Efficiency)

Version 1 Office BPO Shopping Malls

Version 2 Office Hotels* Hospitals*

(*Under development)

Building Criteria Commercial, Institutional, Commercial, Institutional & Recreational, Residential, SEZ Residential Buildings & Factories Projects Registered - 1,496 Certified - 214 Ranking Points of 1-100 (Certified, Silver, Gold & Platinum)
Source : LEED NC & GRIHA as of Feb, 2012

Offices, Hospitals, Hotels, Shopping Malls, BPOs (with a

connected load of 100kW & above)

Registered - 167 Certified - 8 Points of 1-100 ( 1- 5 Star rating)

Office Buildings 108 BPO buildings 11 1-5 Star Rating

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ANALYSIS of L E E D , G R I H A & N B S R P
LEED India
Themes/ 1. Sustainable Sites Parameters 2. Water Efficiency
3. 4. 5. 6.

GRIHA

NBSRP
1. kWh/sq.mt/year 2. kWh/o 3. kWh/room

Differences 1.
2. 3. 4.

1. Site planning 2. Building planning & construction Energy & Atmosphere stage Materials & Resources Water Indoor Environmental Quality Energy Innovation & Design Process Health & well being Regional Priority Waste management 3. Innovation Alternative transportation 1. Mandatory criteria for Building reuse 1. Solar power (1%) Regional priority 2. Ground water treatment Doesnt have points for for drinking mandatory criteria 2. Outdoor sound control 3. Adherence to CPCB for norms 4. Efficient water use during construction 5. Energy audit

1. Only energy consumption is considered 2. Based on actual billed data not on simulation based data 3. Thermal comfort levels and indoor air quality are not considered.

Predictions Energy Saving 30-50%

Energy Saving 30%

Yearly

Monitoring & Only for a period of one year Only for a period of one year Verification Validity of Life long Certification
Source : LEED NC & GRIHA as of Feb, 2012

5 years

1 year

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R E C O M M E N D AT I O N
By merging these tools the limitations can be avoided
Thermal comfort levels and indoor air quality are not considered W H AT Nsatisfactorily EXT ?????? Role of climate is not Investments vs returns captured Any financial incentives ? What are the other interests other than going green w.r.t ratings ?

Monitoring & Verification is only for one year, So after 1 year ??????? Cross check w.r.t predictions & actual performance

CARBON TRADING

RATINGS

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C C M (UNEP - SBCI)
Common Carbon Metric

Launched on 19th May 2010, Paris

(Pilot, Phase 1; First draft was released at COP 15 in Copenhagen in December 2009)

Measuring Energy Use & Reporting GHG Emissions from Building Operations Indicators

Methodology Top-down approach Bottom-up approach

Source : UNEP-SBCI, CCM Pilot Phase - II

TRADING

II. Economic and market-based instruments

1.Kyoto flexibility mechanisms

2.Energy efficiency certificate schemes

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C A R B O N (Emission) T R A D I N G
It is a market-based instrument aimed at mitigating climate change that allows parties to buy and sell permits (allowances) for emission, or credits for GHG
Currently there are several Emission Trading Schemes (ETS); differ in size, scopes and designs.

There are voluntary and mandatory schemes.

However, share a common premise: emission reductions should take place where the cost of reduction

is the lowest, thus lowering the overall cost of combating climate change.
The two types of carbon models are

Cap and Trade: European Union ETS, Regional Greenhouse Gas Initiative (RGGI), Tokyo Cap & Trade,
China Cap & Trade, Perform Achieve & Trade (PAT): India

Baseline and Credit: Clean Development Mechanism(CDM), White Certificate Schemes, New South
Wales Greenhouse Gas Abatement

Source : Perdan Slobodan, Azapagic Adisa (2011). Carbon trading: Current Schemes and Future Developments. School of Chemical Engineering and Analytical Science, T he University of Manchester, UK

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A case of C D M (Clean Development Mechanism)

As of 2008

As of 2012
18 CDM projects (related to EE) in the pipeline (In India) with an average annual 1,26,295 CERs

3,000 CDM projects were only six projects are related to EE

Only one is today generating the CERs.

Reasons for failure

No significant Economic benefits Technology specific Lack of references for baselines Additionality requirement

Recommendations
To use Performance Based indicators, i.e. energy use per Sq.mt Develop common performance-based baselines Supplement technology-based methodologies for verification and monitoring with statistical management tools

Source UNEP SBCI, 2009 The Kyoto Protocol, The Clean Development Mechanism and The Building and Construction Sector. CDM UNFCCC

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E M I S S I O N T R A D I N G Schemes across the World

United Kingdom Connecticut France Italy China India Tokyo

New South Wales

Image Courtesy: www.outline-world-map.com

Baseline & Credit Carbon Model

NTS

Cap & Trade Carbon Model

April 10,2010 August 2010

First urban Cap & Trade program to cover office buildings. Aims to reduce energy related emissions by 25% from 2000 levels by 2020 Covers approx. 1000 commercial & institutional buildings and approx.300 industrial facilities Committed to reduce its emissions by 40-50% in 2020 compared to 2005 levels The National Development and Reform Commission (NDRC) selected 5 provinces and eight cities as so called low carbon pilot projects; implement a national trading scheme by 2015 Xiamen Commercial buildings & Shangai building (under the pilot scheme) It is evolved inorder to incentivize industry to achieve bettersector energy efficiency improvements Currently there are 8 energy intensive sectors under this scheme; Trading of ESCerts There is a proposal for Commercial building sector One of the first mandatory GHG trading schemes in the world to become fully operational This scheme covers NSWs electricity sellers, retailers and generators ; trades NGAC Aims to reduce emissions by 5% below 1990 levels The Energy Saving Scheme commenced on 1 July 2009 These schemes cover electricity, gas & fuel suppliers January 2005 The UK scheme covers residential sector (50,000)

July ,2010

1 January, 2003

January 1 2007

2002

July 2006

Mandatory

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A case of E S S (Energy Saving Scheme) in NSW

Per certificate Certificate price : $25 to $30 Penalty price: $34.27 (without tax)

Source : www.ess.nsw.gov.au

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FINDINGS
Increase in CDM projects related to EEB in India
Currently there is a proposal for LEED India for Existing Buildings: Operations & Maintenance rating

MoU
Have signed an agreement on October 10, 2010 which aims to Demonstrate how Indian building projects can qualify for carbon offset credits delivering sustainable building benefits to India and providing huge opportunities for

Australian investors, developers and service providers with expertise in green building.
The emissions will be measured through Common Carbon Metric Offsets could be sold through the CDM or voluntary trading schemes.

Source : United States :Brinkely & Cicohetti, 2009. Carbon Markets: A new revenue source for commercial real estate

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FINDINGS
Intent/Prescriptive OPTION Performance OPTION Carbon Trading OPTION
Score of 75 & above NABERS Metered baseline method

UNITED STATES

Chicago Climate Exchange

AUSTRALIA

INDIA

Proposal

Source : United States :Brinkely & Cicohetti, 2009. Carbon Markets: A new revenue source for commercial real estate

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RECOMMENDATIONS
Proposal
There is a proposal for PAT scheme for Commercial buildings and it is in the nascent stage, instead of designing all together a new program, the NBSRP can be evolved as a ESS scheme, like the ESS of Australia

The NBSRP can be used as a baseline and emissions can be traded

This can be registered under building Nationally Appropriate Mitigation Actions (NAMAs)
Rating typology Intent based rating Ratings LEED/IGBC rating GRIHA No Carbon credits Certified, Silver 1, 2 & 3 Star Carbon credits are achievable Gold 4 Star Carbon credits are assured Platinum 5 Star

Performance based rating

NBSRP

1, 2 & 3 Star

4 Star

5 Star

Source : United States :Brinkely & Cicohetti, 2009. Carbon Markets: A new revenue source for commercial real estate

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RECOMMENDATIONS
Lack of Information
There is hardly any data available in the public domain. There is no bilateral information exchange between the organizations about the buildings which were in common applying for the ratings/trading. There is lot potential for further research in these areas, but lack of information in the public domain is a major limitation to explore these topics. AUSTRALIA There should be certain mechanism whereby these organizations will be able to identify/track the information about buildings which are applying for other ratings/trading. Ex: IGBC to an extent has a track of buildings applying for CDM

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RECOMMENDATIONS
Developing the NBSRP
No rating exists with a combination of intent & performance based rating The NBSRP can be internalized with LEED/IGBC or GRIHA to avoid the limitations Currently the NSBRP calculates only the EPI it can be converted into CO2 equivalent, as in the case of CCM. There is a good potential to develop the NBSRP into a CCM tool as both these used the same set of parameters to arrive at the EPI (Energy Performance Index)

For national emission trading within the country NBSRP can be used and for
international emission trading Common Carbon Metric (CCM) tool can be used.

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CONCLUSIONS
The research had begun with the question, whether the performance based ratings can
be used as a baseline to develop carbon trading and the findings of the study has showed that there are existing cases which use performance rating as a baseline for carbon trading. There is good potential to implement a carbon trading scheme in India w.r.t to the growing ETS across other countries and proposal for PAT in India; NBSRP can be emerged as a white certificate or ESS and tied up with the PAT For national emission trading within the country NBSRP can be used and for international emission trading Common Carbon Metric (CCM) tool can be used. This study can be useful for BEE to develop the PAT for commercial buildings in India. This study has a potential to be carry forward in developing NAMAs for the building sector in the Indian context.

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ACKNOWLEDGEMENTS
1. CII IGBC (LEED Ratings) Sampath Kumar, Nagesh Gupta, Padmanabh Subramanian, Rohit Ravula & Ravi Teja 2. Saket Saraff, ps collective (NBSRP) 3. Curt Garrigan, UNEP SBCI (CCM) 4. Dr.Rajat Gupta, Oxford Institute for Sustainable Development, UK 5. Girija Shankar, BEE (PAT) 6. Prof.Amit Garg, (IIM-A) 7. NABERS, Australia

8. ENERGY STAR, United States

The research wouldnt have been possible without their help

T H A N K YO U
Shravani Gupta

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ANALYSIS of G R I H A & L E E D
Comparison of points GRIHA & LEED 40 35 30 25 Points 20 15 10

5
0
Site Sustainability Water Efficiency Energy Efficiency Materials & Resources Indoor Environmental Quality Innovation & Design

GRIHA

LEED NC

Source : LEED NC & GRIHA as of Feb, 2012

ANALYSIS of N B S R P & C C M
Parameter NBSRP Regional scope India Building types Non residential (Offices, BPO, hotels & hospitals) Climate data Climatic zones : Hot & dry, Warm & Humid, Cold, CCM
International Residential & non residential CDD -Cooling Degree Days & HDD Heating Degree Days 1. Building stock (Country, City, street, Year of data being entered, Quarter) 2. Area 3. Number of occupants 4. Age of the building 5. Year of last major retrofit

Building information

Electricity consumption

Composite, Temperate 1. Building information (Subtype, address, area) 2. Built up area (excluding parking, lawns, roads, basement etc.,) 3. Number of occupants 4. Average number of persons at any time in office during office hours 5. Working/operating hours 6. Working days/week 7. No.of rooms 1. Purchased from utilities 2. Through diesel/gas generation sets 3. Connected load (kW) or contract Demand (kVA) 4. Installed capacity: DG/GG sets (Kva OR KW)

Fuel 1. List of fuels used consumption 2. Amount of consumption of each fuel (FO, LDO, LPG,
NG, Oil, Gas etc.,)

1. Monthly consumption data 2. Amount of electricity from grid 3. Amount of electricity from green Power/renewable energy 4. Amount of renewable energy that is generated onsite and transferred to the grid 5. Total emissions 1. List of fuels used 2. Amount of consumption of each fuel 3. Energy consumption 4. Total emissions

Metrics 1. kWh/sq.mt/year 2. kWh/o

1. kWh/ sq.mt /year 2. kWh/o/year

1. kgCO2e/ sq.mt /year 2. kgCO2e/o/year

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Source : www.ecobencheetools.in

N B S R P (BEE)