Download Economic Benefits Projected 70% US Commercial Green

60% of Global Carbon Reduction Needed in 5-10 yrs
to Stop Dangerous & Irreversible Climate Change
Fossil fuel use in 2000 (IEA)
Allocation of 6.2 GtC/yr
Allocation
6.2 GtC/yr&
Higher ratings
for greenofbuildings
power, sustainable products, clean
vehicles & mass transit, will reduce more
than the needed 3.7GtC/yr in 5-10 yrs.
Electricity: 40%
Fuels used directly: 60%
Transportation
Electricity
Heating
60% of Global Carbon Reduction Needed in 5-10 yrs
to Stop Dangerous & Irreversible Climate Change
& Global Economic Collapse
Higher ratings by Wall Street will result in:
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100M green/carbon neutral buildings
170M clean vehicles
1600 green power plants
100M certified sustainable products
44% increase in passenger trains & mass transit
Reducing more than the needed 3.7GtC/yr in 5-10 yrs.
Successful Precedent
Phase 1 & Property Condition Assessment (PCA)
Resulted in 95% US Market Penetration in 3-5 Yrs.
100%
Phase 1 was rated
higher & PCA was mandated
by Rating Agencies
for all mortgage backed
securities (MBS)
90%
PCA
Growth
Phase 1
Growth
80%
70%
60%
Higher Green Building Rating
authorized by investment bank
& rating agency on 10/13: final
opinion expected in 12/06
50%
40%
30%
20%
LEED Green Building Growth
10%
Phase I
Property Condition
LEED
Green Power
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20
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Benefits of Higher Ratings for Green
Buildings & Power, Sustainable Products,
Clean Vehicles & Mass Transit
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Stop substantial & devastating global damages &
runaway irreversible climate change
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Protect/enhance human health, environment & social
equity
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Ensure stability & prosperity of global capital markets
& economy
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Ensure viability of private insurance
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Offset annually rising energy costs for foreseeable
future providing energy security
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Implement much needed efficiencies in technology
Green MBS Added Value
Buildings owners/developers achieve lower
costs, higher asset value, more productive work
environments & possibly a lower cost of capital via
mortgage rate.
Investment bankers achieve value through profit
& differentiation surrounding structure & distribution
of Green MBS pool.
Ratings agencies reduce risks of Green MBS pool
& receive commission.
Investors purchase Green MBS backed by assets
that are worth more, viewed as less risky, & more
closely aligned with investor goals of purchasing
sustainable assets.
Economic Benefits
Projected 70% US Commercial Green
Building Market Penetration*
Energy Savings & Daylighting:
Construction Waste Reduction:
Water Pollution Savings from Water Conservation:
Energy Savings from appliances & Lighting:
Added Value from Increased Occupant Productivity,
IAQ & Reduced Absenteeism (5%):
Health Care Savings
Emission Reductions’ Market Value:
$
Total
$36 Billion/yr
$6.7 B/yr
$20 B/yr
$24 B/yr
$632 B/yr
$75 B/yr
1.1 B/yr
$795 Billion/yr value added
Green Retail Buildings Will Also Accrue Increased Retail Sales
* Leonardo Academy & MTS Projections 2003 & Surgeon General 2006
Green Building Industry Value Rating System©
Real estate value is a combination of cash flow, timing and risk.
Green buildings positively affect all three of these metrics.
Basis of higher rating & template for more higher rated sustainable technologies
The Greatest Qualitative & Quantitative Value Exists for:
1. Mold protection (VERY HIGH:
26, adjusted total score)
2. Reduced energy use and exposure to future energy pricing
volatility (VERY HIGH: 25)
3. Reduced climate risk (VERY HIGH:
24)
4. Commissioning/Operational risk (HIGH:
17)
5. Improved indoor air quality and health (HIGH:
17)
6. Lower operating costs and default risk (HIGH:
17)
7. Improved tenant productivity, comfort & a corresponding
increase in rents (MEDIUM: 11)
Value Rating System
Greatest Green Building Risk Reduction (in order):
1.
Decreased dollar risks over time
2.
Reduced large dollar risks
3.
Increased collateral value / reduced
obsolescence risk
4.
Reduced default risk from no or
diminished insurance coverage
5.
Reduced liability risk
Based on Higher Rated Green MBS, MTS Will
Ask for Higher Rated Zero Energy Buildings
Upon Pilot Completion in 2007
Energy
Emergency Standard
CERTIFIED CARBON NEUTRAL
2030 Imperative