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Lend Lease Sustainability News
World Leading Carbon Trading Mechanism for Buildings
22 March 2007
Source: Lend Lease intranet The Hive
Lend Lease and Origin Energy are developing a world leading mechanism that will enable the global property industry to measure and sell carbon credits achieved through energy efficiency measures included in buildings.
This mechanism will provide a direct incentive to property developers and portfolio owners to pursue energy efficiency measures through building design, as well as improvements to heating, cooling and ventilation systems, appliances and lighting which, according to recent analysis by Vattenfall (1) and McKinsey (2), are the most cost-effective way to reduce greenhouse gas emissions.
It is estimated that the construction, operation, maintenance and demolition of buildings contributes up to 40% of global greenhouse gas emissions (UN SBCI 2006).
Lend Lease announced its work on the development of the mechanism following the launch this week of Origin Energy's Carbon Reduction Scheme - Australia's first industry developed voluntary national carbon trading scheme to allow offsets to be achieved through energy efficiency, rather than the traditional offsets of tree-planting and renewable energy projects.
Under Origin's Carbon Reduction Scheme Lend Lease will make its global headquarters at 30 The Bond, in Sydney, carbon neutral by buying carbon credits generated from energy efficiency to offset tenant electricity consumption.
"Lend Lease welcomes the launch of Origin Energy's Carbon Reduction Scheme particularly because it has the potential to be extended to include a mechanism that will enable the property industry to measure carbon credits achieved through energy efficiency measures included in new or refurbished buildings - and to accrue and sell carbon credits from those efficiencies," said Lend Lease Global Head of Sustainability, Maria Atkinson.
"Lend Lease advocates that more needs to be done to reduce greenhouse gas emissions from the built environment and, with potential for broader application, this mechanism has significance for the global property industry.
"Lend Lease produces energy efficient buildings and is contributing to significant reductions in greenhouse gas emissions through a range of energy efficiency measures, but there is currently no mechanism to allow us and other property owners and developers to sell those efficiencies as carbon credits to the market and get a financial return on our energy efficiency investments.
"The mechanism we are developing will recognise those achievements and provide a financial incentive to stimulate more energy efficiency initiatives across the commercial property industry for property developers and owners alike."
Ms Atkinson noted that the development of the mechanism supports the call by the UN Sustainable Building and Construction Initiative for the development of a common measurement that will enable international schemes which aim at addressing climate change to include the built environment.
Lend Lease is a leading international retail and community property group, integrated with strong investment management and construction management businesses.
(1) Vattenfall AB, Global mapping of greenhouse gas abatement opportunities up to 2030, January 2007
(2) McKinsey & Company, A cost curve for greenhouse gas reduction, The McKinsey Quarterly 2007 Number 1
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