Understanding Green Buildings Part 1 – Information and Investment Options in this crucial Green Sector remains surprisingly scarce

Green Buildings are a huge multibillion dollar industry but from an investor’s point of view the information and investment avenues about this very important Green Sector remains surprisingly scare.Most of the investment options in Green Buildings remains confined to huge conglomerates like Johnson Controls,Honeywell,Schnieder Electric,Siemens and a few small startups like Serious Materials.Most of the information about Green Buildings can be gleaned from the US Green Buidling Council and EPA.Interest in Green Buildings started in the 1970s and still remains a niche concept despite huge strides in the 21st Century.Certifications like LEED  has brought awareness about Green Buildings but they still occupy a  remote corner in the Green Investor’s mind.In the Green Building Series,I will try to explain the concept of Green Buildings.For a start here is the Definition of a Green Building also known as a Sustainable Building.

Definition of Green Building

Green building is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s life-cycle from siting to design, construction, operation, maintenance, renovation and deconstruction. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort. Green building is also known as a sustainable or high performance building.

Note the explanations deals with mostly generalities and seems quite common sensical.In simple terms a Green Building implies a Building which uses energy and resource efficiently during the entire life cycle of the Building reducing pollution and waste and making the inhabitants of the Building Comfortable and Productive.

Why Green Buildings are Needed

Buildings account for a huge percentage of Energy Consumption and Carbon Emissions.They also use a massive amount of Resources and are responsible for a majority of the Solid Waste.Here are some fact about Green Building from the EPA.

39 percent of total energy use
12 percent of the total water consumption
68 percent of total electricity consumption
38 percent of the carbon dioxide emissions

What are the 7  Elements of Green Buildings

Green Buildings are made up of 7 Elements which need to incorporated during the Design and Construction of Green Buildings.

1. Energy Efficiency and Renewable Energy
2. Water Efficiency
3. Environmentally Preferable Building Materials and Specifications
4. Waste Reduction
5. Toxics Reduction
6. Indoor Air Quality
7. Smart Growth and Sustainable Development

Summary

Green Buildings is a huge growing industry which is  relatively unknown amongst investors as compared to other Green Sectors like Renewable Energy,Smart Grid etc.In the next part of this series on Green Buildings,I will be trying to give some estimates of the size of the Green Industry and the growth prospects.In other parts of the series,I will be covering the companies,materials and other concepts about Green Buildings.