Green Building Programs

Predictions For the Growth of Green

Over the last couple of decades, there has been a rapidly accelerating demand for energy-efficient green buildings. Energy efficiency is one of the most important aspects of green buildings and an important cost-savings for any business, facility management, or homeowner.

Many countries now include energy efficiency as a mandatory criteria in their building regulations. Integrated systems environments in green buildings help meet energy-efficiency standards. With the rising need for energy-efficient green buildings, the demand for green building materials is also expected to increase.

A History of Green Buildings

The concept of ecological architecture was introduced in the 1960s.

The energy crisis in the 1970s further fueled the development of renewable energy resources, including solar, geothermal, and wind energy, as well as more energy-efficient buildings. In 1980, the concept of “sustainable development” took hold, and a few developed countries began implementing energy-saving building systems. In 1990, the United Kingdom introduced the world’s first green building standard, followed by the formation of the U.S. Green Building Council in 1993.

The U.S. Green Building Council established the Leadership in Energy and Environmental Design (LEED) green building rating system to create a central framework for codifying and verifying the effective implementation of green building practices.

Despite its origination and predominant application in the United States, it has grown into a robust and internationally recognized standard.

Since the 1990s, agencies and countries worldwide have adopted green building programs and standards. Regardless of the system for guiding its implementation, the green buildings concept remains universal. It has evolved into a necessary cornerstone in the building sector and a major focus of academia and industry in seeking to address global energy challenges.

The Green Building Market

  • The U.S. green building materials market was estimated at more than $190 billion in 2021. The market is projected to have a compound annual growth rate between 8. 8% and 17.5%.
  • The worldwide green building materials market should nearly double over the next five years, reaching $523.7 billion by 2027, according to a recent analysis by Future Market Insights, Inc.
  • In 2020, according to the U.S. Green Building Council (USGBC), 1,171 projects were certified with LEED (Leadership in Energy and Environmental Design) for green buildings in the United States, with 281.05 million gross square feet.
  • There has been a dramatic rise in sustainable building in the United States over the past 15 years. In 2005, there were 3,156 buildings registered with LEED. By 2019 there were almost 70,000.
  • Commercial: By 2010, green buildings will represent approximately 10% (~$23 billion) of construction starts.
  • Corporate America: By 2009, 80% of corporate America is expected to be engaged in green at least 16% of the time; 20% engaged 60% of the time.
  • Institutional: Dedication to green health care and educational facilities is expected to increase dramatically over the next five years.
  • Residential: From 2017 to 2019, the number of LEED-certified homes grew 19%, with more that 400,000 units in the U.S.

Why there’s a revolution in green building in the U.S.

Climate Change Concerns

Concerns about climate change are one of the most important reasons architects and contractors are building green. Commercial and residential buildings use about 40% of the United States energy consumption.

The United States Green Building Council estimates that green building reduces energy use by 30%, carbon emissions by 35%, water use by 30% to 50%, and generates waste cost savings of 50 %to 90%. To reduce the effects of climate change, buildings need to be more environmentally friendly.

City, State, And Federal Incentives

Across the U.S., a patchwork of zoning regulations, tax incentives, and preferential treatment for green developments has made investing in sustainable building techniques more appealing.

There has never been a better time to build green. The American Recovery and Reinvestment Act (ARRA) appropriated billions of dollars to support green-building projects and energy-efficiency and renewable-energy programs.

Sales And Marketing Benefits

Studies indicate buyers are willing to spend more on properties with various green features. Buyers know they will save money on utilities over the long term if a structure is well-insulated and energy efficient. Millennial homebuyers, in particular, are concerned about sustainability issues and may be more attracted by a property’s green building certification.

Reduced operating costs from increased energy efficiency.

Commercial buildings account for 18 percent of total U.S. energy consumption and contribute an estimated 15 percent of U.S. greenhouse gas emissions. When considered over a building’s 40–50-year lifespan, the energy-related environmental impacts of its operations dwarf the impact of energy and fossil fuels consumed during its construction. Reducing a building’s energy consumption has a major beneficial impact on the environment, a point not overlooked by the National Association of Real Estate Investment Trusts (NAREIT), which recognizes the significance of energy-efficient buildings through its environmental awards programs.

Energy consumption represents 30 percent of a typical commercial office building’s operating costs, making it the single largest controllable cost of operations. Improved energy efficiency has a direct and substantial payback for investors. For example, a 30 percent reduction in energy use (commonly achievable in the average commercial office building) can yield the equivalent of a 5 percent increase in Net Operating Income (NOI) and overall asset value. The EPA estimates that the 2,500 buildings that have earned the ENERGY STAR label for energy efficiency through 2005 save a combined $350 million on their energy bills, compared to similar buildings with average energy consumption.

Facts and Figures About Green Building & LEED

Conserving water

Water savings from LEED commercial buildings equals more than 7% of all non-residential water use.

Reducing waste

By 2030, LEED projects will have saved more than 540 million tons of waste from going to landfills.

Fewer cars, fewer miles driven

Thanks to efficient locations and alternative transportation options, nearly 4 billion vehicle miles have been avoided by occupants of LEED buildings.

Green Materials

Certified projects have specified more than $100 billion in green materials.

Implement sustainable strategies

LEED can help new and existing buildings implement sustainable and greener strategies to become high-performing buildings.

Indoor environmental quality

Improving indoor air quality can help reduce days lost to asthma, respiratory allergies, stress, and depression.

Reduced pollution

Energy-efficient buildings help reduce pollution and improve outdoor air quality. This makes LEED a critical tool in reducing smog.

Happier employees, happier occupants

Employers in LEED-certified spaces report increased employee productivity and higher recruitment and retention rates.

Bringing in the good, keeping out the bad

LEED creates healthier spaces with cleaner air, daylight, and free from many of the harmful chemicals found in paints and finishings.

Meet ESG goals

LEED helps investors meet, measure, and manage their real estate ESG performance goals by providing investors with a globally recognized green building framework. LEED helps investors prioritize building efficiency, decrease operational costs, increase asset value, and ensure occupants’ productivity, comfort, health, and well-being. ESG stands for Environmental, Social, Governance and is used as an investment strategy to “encourage” organizations to “act responsibly.” ESG works by analyzing organizations across three criteria — their environmental footprint, stance on social issues, and internal corporate governance.

61% of corporate leaders believe that…

sustainability gives their companies market differentiation and improved financial performance.

Vacancy rates for green buildings are…

4% lower than for non-green properties.

25% less energy on average used by LEED buildings

compared to commercial buildings.

$1.2

billion

in energy savings

from LEED-certified buildings from 2015-2018.

$149.5

million

in water savings

from LEED-certified buildings from 2015-2018.

$715.3

million

in maintenance savings

from LEED-certified buildings from 2015-2018.

$54.2

million

in waste savings

from LEED-certified buildings from 2015-2018.

34% lower CO2 emissions.

25% less energy consumed.

11% less water consumed.

80 million tons of waste diverted from landfills & 78 million tons of avoided CO2 emissions

89/100 average ENERGY STAR score for LEED projects.

1.3 million tons of coal equivalent saved each year.

LEED is the world’s leading green building project and performance management system.

It delivers a comprehensive green building design, construction, operations, and performance framework.

A 2014 UC Berkeley study found that by building to LEED standards, buildings had 50% fewer GHGs (Greenhouse Gas)

than conventionally constructed buildings due to water consumption. These LEED buildings also had 48% fewer GHGs from solid waste and 5% fewer GHGs from transportation.

What are common sustainable building features and practices?

You can select a wide variety of sustainable building features and practices to reduce a structure’s environmental impact. You might choose to use some or all the following kinds of features, depending on the location and materials available:

  • Materials:

    • Most sustainable buildings use recycled or upcycled materials whenever possible. This reduces the carbon footprint of the structure.
    • Choosing locally manufactured materials helps lower transportation emissions if you need to use new materials.
    • Remember that cold-formed steel is made with a minimum of 25% recycled steel and can always be 100% recycled at the end of its life.

  • Solar Energy:

    • Solar panels provide clean, green energy while saving owners money over the long run.
    • Each kilowatt-hour (kWh) of solar energy generated reduces greenhouse gas emissions and other dangerous pollutants.
    • Solar also reduces water consumption.

  • Rainwater Harvesting and Gray Water Usage:

    • Collecting rainwater and using it in restrooms can significantly cut a building’s water usage.
    • Rainwater harvesting also prevents rainfall from becoming stormwater pollution as it runs off into the storm drain.

  • Integrating Nature:

    • Green buildings in the U.S. integrate nature by planting local species on the roofs and landscaping to encourage pollinators, while helping tackle air pollution.
    • Plants and trees create a “green roof” that helps manage rainwater, provides building insulation, and cools nearby urban air, among other benefits
    • They are also planted in “rain gardens” to filter pollution from stormwater runoff, allowing it to be redirected in various useful ways that ultimately conserve water and ease related infrastructure and environmental burdens.

Where to begin with sustainable building

If your company is working on increasing its sustainable building projects, the following tips will help you get started.

  • Look into Green Building Certification:

    • The U.S. Green Building Council is the organization behind LEED certification.
    • LEED is the most common sustainable building standard in the USA.
    • If you’re aiming to create a sustainable building, it will be helpful to follow LEED recommendations before applying for certification.

  • Reassess Your Processes:

    • Take the time to investigate your existing design and construction processes. Are you using sustainable materials? Can you integrate nature into your designs? Are you using lots of manmade chemicals where eco-friendly alternatives are available?
    • Very often, the changes needed to make a new building sustainable are relatively simple.

  • Look At Your Suppliers:

    • Assessing your current suppliers and seeking more sustainable alternatives where necessary is also valuable.
    • For example,  eco-friendly HVAC systems can save money and reduce electricity usage.

Check out the sustainability of cold-formed steel!

View Infographic

LEED, or Leadership in Energy and Environmental Design, is the world’s most widely used green building rating system.

LEED provides a framework to create healthy, highly efficient, and cost-saving green buildings and is available for virtually all building, community, and home types. LEED certification is a globally recognized symbol of sustainability achievement.

  • More than 180,000 total LEED projects worldwide.

  • More than 102,000 total LEED-certified projects worldwide.

  • More than 2.6 million certified square feet per day.

  • 50 states with LEED projects.

  • More than 180 countries and territories with LEED projects.

The vision of the U.S. Green Building Council (USGBC) is for buildings and communities to regenerate and sustain the health and vitality of all life within a generation. Their mission is to transform how buildings and communities are designed, built, and operated, enabling an environmentally and socially responsible, healthy, and prosperous environment that improves the quality of life.