Green buildings yield 30-80% lower utility costs compared to standard buildings, finds GBC Indonesia and IFC study

Thursday 14th March 2019

 

In February, the Green Building Council Indonesia and IFC, a member of the World Bank Group released the results of a joint study on the benefits of green buildings. The report, entitled Measuring What Matters: Green Building Benefits in Indonesia revealed that the nine green certified buildings (Greenship and EDGE) surveyed, mostly located in Jakarta, yielded 30 to 80% lower annual utility costs compared to standard buildings. 

The buildings sector is Indonesia’s third-largest final energy consumer, accounting for 30% of the country’s total energy consumption and is expected to rise to 40% by 2030. Yet, the government is pushing for higher energy efficiency in buildings, targeting a 29% reduction in emissions by 2030.

Currently, more than 100 buildings in Indonesia have received voluntary green building certifications, and more than 3,000 buildings have complied with mandatory green building codes, covering an area of more than 20 million square meters. 

The study found that although the nine green buildings were 0-17% costlier to construct than standard buildings due to incremental design costs and building materials, the operational savings demonstrate long term profitability. 

Iwan Prijanto, GBC Indonesia’s Chairperson said: “Promoting green buildings needs evidence, not just conceptual theory. We are glad to share these excellent examples that show significant savings for operators and investors, while providing a healthier indoor and outdoor environment for occupants.” 

Marcene Mitchell, Global Head, Strategy and Business Development for the IFC Climate Business Department said: “The electricity and water savings from the nine green buildings in the past one to two years of operation are very encouraging. The results—achieved through IFC’s Green Building Market Transformation Program—validate that Indonesia is on track in terms of its commitment to reduce greenhouse gas emissions through green buildings. Further, they provide environmental and financial benefits to developers, tenants, and other key stakeholders.”

Since 2012, the Jakarta Provincial Government has enacted the green building code, which governs building designs for the city, contributing to lower electricity and water consumption, and optimizing the use of building materials. IFC partnered with the Jakarta Provincial Government to establish the code, with the government of Switzerland’s support through its State Secretariat for Economic Affairs (SECO). 

To download the report Measuring What Matters: Green Building Benefits in Indonesia, click here.

To find out more about GBC Indonesia, click here.

To find out more about IFC, click here.

 

In February, the Green Building Council Indonesia and IFC, a member of the World Bank Group released the results of a joint study on the benefits of green buildings. The report, entitled Measuring What Matters: Green Building Benefits in Indonesia revealed that the nine green certified buildings (Greenship and EDGE) surveyed, mostly located in Jakarta, yielded 30 to 80% lower annual utility costs compared to standard buildings. 

The buildings sector is Indonesia’s third-largest final energy consumer, accounting for 30% of the country’s total energy consumption and is expected to rise to 40% by 2030. Yet, the government is pushing for higher energy efficiency in buildings, targeting a 29% reduction in emissions by 2030.

Currently, more than 100 buildings in Indonesia have received voluntary green building certifications, and more than 3,000 buildings have complied with mandatory green building codes, covering an area of more than 20 million square meters. 

The study found that although the nine green buildings were 0-17% costlier to construct than standard buildings due to incremental design costs and building materials, the operational savings demonstrate long term profitability. 

Iwan Prijanto, GBC Indonesia’s Chairperson said: “Promoting green buildings needs evidence, not just conceptual theory. We are glad to share these excellent examples that show significant savings for operators and investors, while providing a healthier indoor and outdoor environment for occupants.” 

Marcene Mitchell, Global Head, Strategy and Business Development for the IFC Climate Business Department said: “The electricity and water savings from the nine green buildings in the past one to two years of operation are very encouraging. The results—achieved through IFC’s Green Building Market Transformation Program—validate that Indonesia is on track in terms of its commitment to reduce greenhouse gas emissions through green buildings. Further, they provide environmental and financial benefits to developers, tenants, and other key stakeholders.”

Since 2012, the Jakarta Provincial Government has enacted the green building code, which governs building designs for the city, contributing to lower electricity and water consumption, and optimizing the use of building materials. IFC partnered with the Jakarta Provincial Government to establish the code, with the government of Switzerland’s support through its State Secretariat for Economic Affairs (SECO). 

To download the report Measuring What Matters: Green Building Benefits in Indonesia, click here.

To find out more about GBC Indonesia, click here.

To find out more about IFC, click here.