Saudi Arabia, a nation undergoing rapid urbanization, has been at the forefront of implementing green building practices.
This shift towards sustainability is driven by a combination of factors, including the country's commitment to Vision 2030, a growing awareness of environmental concerns, and the economic benefits associated with energy-efficient buildings. This article explores the evolution of green building practices in Saudi Arabia, highlighting key initiatives, challenges, and the impact on the real estate sector.
The Rise of Green Building Initiatives
The Saudi Arabian government has played a pivotal role in promoting green building practices. The Saudi Green Building Forum, established in 2011, has been instrumental in raising awareness and fostering collaboration among stakeholders. Additionally, the introduction of the Saudi Green Building Standard (SGBS) has provided a framework for developers and architects to adopt sustainable practices.
Key Green Building Features
- Energy Efficiency: Saudi Arabia's arid climate presents unique challenges for energy consumption. Green buildings in the country often incorporate features such as solar panels, efficient insulation, and advanced HVAC systems to minimize energy usage.
- Water Conservation: Water scarcity is a significant issue in the region. Green building practices in Saudi Arabia include rainwater harvesting, efficient irrigation systems, and the use of low-water-consumption fixtures.
- Sustainable Materials: The use of locally sourced, recycled, or sustainable materials is encouraged in green building projects. This not only reduces the environmental impact but also supports local economies.
- Indoor Air Quality: Ensuring good indoor air quality is a priority in green buildings. This involves proper ventilation, the use of low-VOC materials, and effective air filtration systems.
Supporting Data
To quantify the impact of green building practices in Saudi Arabia, it's essential to examine relevant data. Here are some key indicators:
- Number of LEED-certified buildings: The Leadership in Energy and Environmental Design (LEED) certification program is widely recognized globally. Tracking the number of LEED-certified buildings in Saudi Arabia provides a measure of progress.
- Energy savings: Quantifying the energy savings achieved by green buildings can demonstrate their economic and environmental benefits.
- Water savings: Measuring water consumption reduction in green buildings highlights the positive impact on water resources.
- Carbon emissions reduction: Calculating the reduction in carbon emissions associated with green building practices is crucial for understanding their contribution to climate change mitigation.
Challenges and Opportunities
While significant progress has been made, several challenges remain in the implementation of green building practices in Saudi Arabia. These include:
- Cost: The initial cost of constructing a green building can be higher than a traditional building. However, long-term operational savings often offset these costs.
- Lack of awareness: Raising awareness among developers, architects, and the general public about the benefits of green building is essential.
- Regulatory framework: Ensuring a robust regulatory framework that supports green building practices is crucial.
Despite these challenges, the opportunities for growth in the green building sector in Saudi Arabia are significant. The country's commitment to sustainability, coupled with the increasing demand for energy-efficient and environmentally friendly buildings, presents a promising future for green construction.
The evolution of green building practices in Saudi Arabia is a testament to the country's dedication to sustainable development. By incorporating energy-efficient features, water conservation measures, and sustainable materials, green buildings are playing a vital role in addressing environmental challenges and creating healthier, more resilient communities. As Saudi Arabia continues to embrace green building initiatives, it is poised to become a global leader in sustainable construction.
The Rise of Green Building Initiatives
PwC recently found that 77% of institutional investors intend to cease investments in non-ESG products by 2022. In alignment with this trend, real estate investors are increasingly turning to green buildings to fill their portfolios with properties that meet the ESG standards set for them by investors, regulators, and industry ethical standards.
Earlier in 2021, sustainable investment leader Invesco launched the first green building-focused ETF (GBLD), which will target property companies that support and specialize in buildings with high energy efficiency, sustainable materials, and healthier indoor environments. The ETF will track MSCI’s Global Green Building index when choosing stocks.
Figure 1 Growth in LEED-Certified Buildings in Saudi Arabia
AlphaSense research shows a documented trend that aligns with the increase mentioned earlier in focus on green buildings throughout the pandemic and as we move into the post-pandemic period. The document trend shows an apparent uptick in saying “green building” and “investing” year-over-year. The mentions themselves reflect the increased emphasis by firms and funds on ESG and green building in real estate.
Table 1 Key Green Building Initiatives in Saudi Arabia
An energy transition (or energy system transformation) is a major structural change to energy supply and consumption in an energy system. Currently, a transition to sustainable energy is underway to limit climate change. Most of the sustainable energy is renewable energy. Therefore, another term for energy transition is renewable energy transition. The current transition aims to reduce greenhouse gas emissions from energy quickly and sustainably, mostly by phasing-down fossil fuels and changing as many processes as possible to operate on low carbon electricity. A previous energy transition perhaps took place during the Industrial Revolution from 1760 onwards, from wood and other biomass to coal, followed by oil and later natural gas.
Figure 2 Progress of current energy transition to renewable energy
Global sources for energy from 2000 to 2021 as measured in exajoules. The trend since 2016 is also highlighted in this adaptation of a chart from the global carbon project.
The study of the selected papers has allowed a systematic classification and definition of the main POE survey tools currently available, together with the identification of their methods, techniques, feedback categories, procedures (transversal, longitudinal, point-in-time), and compliance with different green building certification schemes such as LEED, BREEAM, NABERS, GREEN MARK and GREEN STAR.
Figure 3 Distribution of LEED-Certified Buildings by Building Type
For the longitudinal POE procedure, 11 Papers (22% of the total) have been selected and catalogued. In particular, authors describe POE campaigns conducted in offices (37%), residences (27%), mixed-use buildings (18%) and schools (18%).
Table 2 Comparison of Energy Consumption in Green and Traditional Buildings
Key Green Building Features
In passive solar building design, windows, walls, and floors are made to collect, store, reflect, and distribute solar energy, in the form of heat in the winter and reject solar heat in the summer. This is called passive solar design because, unlike active solar heating systems, it does not involve the use of mechanical and electrical devices.
The key to designing a passive solar building is to best take advantage of the local climate performing an accurate site analysis. Elements to be considered include window placement and size, and glazing type, thermal insulation, thermal mass, and shading.[2] Passive solar design techniques can be applied most easily to new buildings, but existing buildings can be adapted or "retrofitted".
Figure 4 Energy Efficiency Measures in Green Buildings
Passive solar design takes advantage of a building's site, climate, and materials to minimize energy use. A well-designed passive solar home first reduces heating and cooling loads through energy-efficiency strategies and then meets those reduced loads in whole or part with solar energy.
Table 3 Water Conservation Techniques in Green Buildings
The construction sector plays a substantial role in global resource consumption, waste production, and environmental deterioration. To address these effects, there is an increasing necessity to embrace pioneering environmentally friendly construction materials that support sustainability.
Figure 5 Sustainable Materials Used in Green Buildings
Pie Chart showing percentage of savings with green building material.
Table 4 Indoor Air Quality Improvements in Green Buildings
Challenges and Opportunities
The levelized cost of electricity (LCOE) is a measure of the average net present cost of electricity generation for a generator over its lifetime. It is used for investment planning and to compare different methods of electricity generation on a consistent basis. The more general term levelized cost of energy may include the costs of either electricity or heat. The latter is also referred to as levelized cost of heat or levelized cost of heating (LCOH), or levelized cost of thermal energy.
Figure 6Cost Comparison of Green and Traditional Buildings
A line graph tracking the levelized cost of major electricity sources between 2009 and 2023 in dollars, according to data from Lazard. Average unsubsidized levelized cost of energy. With increasingly widespread implementation of sustainable energy sources, costs for sustainable have declined, most notably for energy generated by solar panels.
Table 5 Barriers to Green Building Adoption
Table 6 Opportunities for Green Building Growth
Conclusion
Saudi Arabia's commitment to green building practices has led to significant progress in sustainable construction. Through initiatives such as the Saudi Green Building Forum and the Saudi Green Building Standard, the country has made strides in promoting energy efficiency, water conservation, and the use of sustainable materials. While challenges remain, the opportunities for growth in the green building sector are substantial. By addressing these challenges and capitalizing on emerging technologies, Saudi Arabia can continue to lead the way in sustainable development and create a more resilient and environmentally friendly built environment.
Disclaimer: The content provided in this article is for informational purposes only and should not be construed as investment advice. Tanemya Capital will not be held responsible for any decisions made based on the information provided. Always consult with a qualified financial advisor before making any investment decisions.
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