Is Green Building Cheaper Than You Think?

Suzanna De Baca -- Expert Business Source, 10/10/2007 12:20:00 PM

Does green building cost too much?  Does it really make that much of a difference to the environment?

The cost of building green --the practice of constructing, renovating, operating, or reusing structures in an ecologically or resource-efficient manner--is a lot less expensive than many people in the design and construction industry think, according to a recent report from the World Business Council for Sustainable Development (WBCSD).  The results of the survey of 1,400 construction and real estate industry professionals worldwide underscore the continuing need for education and training to help industry professionals understand the true costs and benefits of going green.

The survey reveals that industry participants overestimate the cost of creating green buildings by a significant amount.  Survey respondents indicated they believed a green building would cost 17% more to construct than a regular building.  The true cost, according to the WBCSD, is likely to be under 5% in excess of non-green buildings.

Furthermore, the study shows that architects, builders and real estate agents also underestimate the ultimate impact that green building has on climate change. When queried about what percentage of direct and indirect carbon dioxide emissions come from the construction and management of buildings, respondents on average put the number at 19%, with US construction and real estate industry professionals estimating an even lower percentage of 12%. Based on the WBCSD’s research, the actual percentage is around 40%. 

The disconnect between perception and reality is not surprising, given the relatively recent attention paid to environmentally friendly and efficient building techniques and practices.  The green building industry has expanded dramatically in the last ten years. An article in Environmental Finance Magazine’s August 23, 2007 issue estimates the green building industry is now worth upwards of $12 billion. One of the major industry organizations, the U.S. Green Building Council (USGBC) hit the 10,000 member mark in July 2007. As the industry continues to grow, studies like the one released by the WBCSD are critical in raising awareness of the economic impact of green building.

The WBCSD is a global association of about 200 companies that serves as a business advocate for sustainable development through economic growth, ecological balance, and social progress.   With headquarters in Geneva, Switzerland, the WBCSD has members in more than 35 countries and 20 major industrial sectors worldwide. The report is available on their website:

Suzanna de Baca is President of Private Capital Solutions Group.  She is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 7 Hanover Square, New York, NY 10004, (888) 600-4667.  Securities products/services and advisory services are offered through PAS, a registered broker/dealer and investment advisor. Private Capital Solutions Group is not an affiliate or subsidiary of PAS.
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Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice