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Delivering a Low Carbon Economy Keith Clarke Chairman Construction Industry Council From this… Corporate Social Responsibility How many dead polar bears does it take to change a light bulb? If you haven’t replaced all your incandescent bulbs with Compact Fluorescents, you’re contributing to Global Warming and driving Polar Bears toward extinction. Ban the Bulb! 2 Climate change • What is the evidence? • In 1750 the Earth’s atmosphere had 280 parts per million of CO2 • By 2005 the levels had increased to 379 ppm of CO2 and the Earth’s temperature had risen by 0.76 degrees. • By 2100, the Earth’s temperature may rise by 2-4.5 degrees and sea levels may rise by 0.18 to 0.59 metres. • HUMAN CAUSE IS UNEQUIVOCAL •Source: International Panel on Climate Change 3 … a realisation of danger To this 2°C ? And this … A fundamental part of the economy Green stimulus spending (USD billion) Breakdown of U.S. Green stimulus spending Energy efficiency 32% Renewables 23% Low Carbon 5% Rail 9% Grid 11% Water waste 14% Source HSBC 2009 5 Look who’s talking now… 6 Some issues remain… • SAFETY in construction • HEALTH of site workers • DIVERSITY in professionals 7 Carbon Budget 8 Strategic decision making •Reviewing strategic investment decisions on the basis of carbon? •When would carbon intensity over-ride cost? •Can we guide capital investment and operational budgets? – Capital premium for long-term low energy consumption? – Pay-back periods and discount rates? Bahrain World Trade Center, opened in 2008 9 20:20 hindsight would be great • What are the risks? • Climate change uncertainty means uncertainty for any design specification • Legal action if infrastructure fails? • • • • Code evolvement Zero new carbon homes by 2016 Zero carbon new non-domestic buildings by 2019 Can codes change fast enough? • Skills development, knowledge transfer, tools 10 Can we predict what will happen? • Shorter design life? • Infrastructure / buildings, e.g. London 2012 Games has 100+ non-permanent structures • Standards & materials will change? • Recyclable / reusable • Built Environment professionals need to be ≥3 years ahead of society • In old money that’s ≥6 years… 11 Engineers can solve the challenges of carbon reduction •"If you really want to change the world - choose a career in engineering. And I mean real engineering, not financial engineering” Rt. Hon. Lord Mandelson, 24 Nov 2008 12