According to a recent report by Anarock, green buildings can cut down consumption of energy by 20-30% and water usage by 30-50%. Such buildings reduce the need for lighting and air conditioning, and so lower carbon emissions. Also, green buildings have a lower carbon impact on the environment compared with traditional structures.
The report says that green homes can cost at least 15% more than traditional structures and green buildings can cost somewhere 3-5% higher than a conventional building, However, rising demand for green buildings in India has led a fall in the cost because there is now easier access to green materials, products & technologies, says Rajeev Ralhan, Partner, Clean Energy, PwC India.
“The percentages may slightly be higher for tier-II & -III cities, but definitely not burdening. However, the tangible and intangible benefits that can be reaped by those additional investments in green concepts add significant value to all. Also, there is an immense opportunity to lower the additional investment on green concepts if pursued during the design stage itself, which can be narrowed down to 1% or negligible,” adds Ralhan.
There is an opportunity to reduce the cost of a green structure at the inception or implementation of the project. One way to do this is by changing the materials used for construction.
Vikramjiet Roy, Managing Director of civil engineering sustainable solutions provider Maccaferri India, says, “Alternate materials like geosynthetics used for greener construction of roads, bridges, railways or any other infrastructure are lightweight, high-strength synthetic materials that can replace traditional materials. They are easy to install, speeding up construction timelines and cutting labour costs. Additionally, due to high-quality materials, their durability and longevity lead to long-term savings and minimal maintenance expenses. These alternative materials have adaptability and versatility to optimise material usage and reduce waste, further contributing to cost-effectiveness.”He, however, highlights the need to do a careful cost-benefit analysis before implementation as the savings will depend on the project requirements and site conditions.
Green construction space needs a push
India, with nearly 2.8 million gross sq mt of green buildings, stood third in the world for Leadership in Energy and Environmental Design (LEED) of green buildings in 2021, according to the US Green Building Council’s annual report. While China ranked first with over 14 million gross sq mt, Canada followed with over 3.2 million gross sq mt of green space.
Even as sustainable buildings are a growing craze in India, less than 10% of the buildings in the country are certified green, implying more needs to be done in the space.
iStockEven as sustainable buildings are a growing craze in India, less than 10% of the buildings in the country are certified green, implying more needs to be done in the space.
“While development in tier-I cities is moving on a positive note by adopting the green building concept, the governments and the national agencies should focus more on the tier-II, -III, semi-urban and rural-urban areas to accelerate the adoption,” says Ralhan.
Lack of awareness about the potential benefits of green building technology is seen as a major reason hindering the proliferation of the environmentally friendly structures.
Shatakshi Suman, Team Lead & Principal Research Associate at a New Delhi-based policy enabler group Alliance for an Energy Efficient Economy (AEEE), says there is also a general perception that green buildings have high incremental compliance costs.
Roy — whose company has been providing customised sustainable solutions for various projects of the Indian Railways, the Ministry of Road Transport and Highways, the Indian Army and some private companies — says the practice of awarding contracts based on the L1 (lowest bidder) tender system is also a prime concern when it comes to faster adoption of sustainable practices. “This system, which places a strong emphasis on cost, has the potential to impact construction standards and material choices. Contractors may face pressures to prioritise affordability, potentially leading to compromises that could undermine the integrity and safety of the infrastructure. The L1 tender system often overlooks factors such as experience and track record, which are crucial for ensuring the delivery of high-quality infrastructure projects,” says Roy.
What is in store for the future?
The building construction market in India is predominantly driven by residential buildings, says Suman of AEEE. This segment saw a compound annual growth rate (CAGR) of 12.5% in 2015-20. Between 2017 and 2021, the green building market showed a CAGR of 7.2%, she adds. “This data shows a considerable expansion of the green building market in India, displaying a rising interest in sustainable and eco-friendly construction practices. Over the next two decades, India is projected to more than double its building space, with significant growth mainly concentrated in urban areas,” she says.
In value terms, the green construction market in India has expanded from a Rs 150-200-crore industry 10 years ago to Rs 3,000-3,500 crore at present.
Apart from revisiting the L1 system, experts say the authorities should disallow joint ventures where the party that makes the contract eligible for a green project is only a silent partner. Subcontracting can be permitted only if the parties concerned have appropriate qualifications.
The challenging topography in various parts of the country clearly signifies the importance of adopting focused sustainable development techniques instead of unplanned and vicious consumption of natural resources, says Roy. “A fiscal inducement for using sustainable construction techniques or making such practices mandatory in all government projects can be a good step to start with. Furthermore, an increased focus on PPP-based infrastructure projects would improve the availability of long-term funding from financial institutions. This will likely lower the borrowing cost and bring in direct government funding for sustainable infrastructure projects, and help the country save on loss of lives, capital, time and effort to recuperate from disaster,” adds Roy.
