Resource Efficiency Criteria for Development in Cape Town - Opportunity and Way Forward

Transcription

1 Resource Efficiency Criteria for Development in Cape Town - Opportunity and Way Forward Planning and Building Development Management in collaboration with Environmental Resource Management Department 13 May 2016

2 BUILDING A BETTER CITY, TOGETHER Doing more with less.

3 Presentation outline Why better urban spatial and built form better for all of us Resource efficiency as opportunity Policy and regulatory direction is getting stronger Some local and global trends Useful tools and resources Way forward, together 3

4 Sustainability is no longer a nice to have, it s an imperative. The importance we place on making Cape Town a green city is fundamental for our plans to retain and attract business. Rob Kane, Vunani Properties and Chair of Cape Town CCID. Source: GBCSA Rands and Sense 2011

5 Business as usual would mean doubling energy use and emissions, and tenfold increase in energy costs by 2040

6 Energy 2040 Vision City committed to target of 13% carbon emission reduction by 2020, and 37% by

7 Electricity consumption by sector Government 4% Agriculture 2% Industrial 13% Residential 37% Commercial 44% BUILDINGS

8 LOCATION Source: City of Cape Town s 2015 State of Energy Report 8

9 TOD + built green + solar

10 Best locations for more efficient urban fabric 10

11 THE OPPORTUNITY

12 Existing & forthcoming incentives Urban Development Zones (UDZs) Tax breaks - 12L and 12B Eskom rebate for retrofit coming 2016 ESCO Lite Reduced minimum parking requirements in PT 1 & PT 2 areas going for council approval end May. 0 requirement for PT 2 zones. Clever to build parking 2.4 m high, so can convert in future. TOD premium - increasing value of properties & rentals close to MyCiti and PT routes. Good returns, especially for unmet demand & mixed use Localised development facilitation initiatives Special Rating Areas/ CIDs in TOD areas -favourable conditions. Incentives Policy review. Spatial targeting for underperforming industrial property markets, manufacturing development incentives. 12

13 Existing & forthcoming incentives 13

14 Existing & forthcoming incentives 14

15 TOD property premium

16 Building level incentives Redevelopment can be faster (no EIA) and application process easier. Lower application fees for redevelopment of some older sites. E.g. Voortrekker Road Corridor infrastructure framework Green rational designs get higher level attention, which is normally faster. (City s Building Control Officer and Head Building Control have green building experience and training) Free disposal of (separated) building rubble at 23 designated sites for 1.5 tonne loads. Also scheme for larger demolitions. Grey water available for irrigation in some areas. City educating tenants/ purchasers on value of green e.g. investigating certificate at sale/ rental. End- occupier demand set to increase. Eskom retrofit rebate coming

17 Green higher cost Green = better investment

18 Green building cost Cost of Green study by ASAQS and GBCSA. Preliminary results show marginal extra cost. Final results due in about July Recent Green Star SA rated buildings ABSA Towers West, 5 Star - 2% extra WWF head office, 6 Star - 0% extra (R10k / m2) Aurecon in Century City, 5 Star - 2% extra None above 10% extra. More mature markets, as per GBCSA s 2011 Rands & Sense: In Australia 4-Star is cheaper, and 6-Star usually 6% extra USA majority premiums between 0% - 4%. 18

19 The downstream economic benefits of financial savings that get passed onto the end-user of the building cannot be ignored. Mark Noble and Alex Morris V& A Waterfront

20 Green buildings attract higher calibre of tenant who are happy to pay a slightly higher rental to let a better quality building. Colin Anderson, Rabie

21 Green buildings just make financial business sense. Justin Bowen, Menlyn Maine

22 Efficient buildings get better returns 12.1% 29% higher return 9.4% 22

23 Redefine s commitment to building green CEO driving sustainability initiatives Committed to: Creating efficient, modern buildings that adhere to latest cutting edge environmentally responsible technologies which lowers cost of occupation and utilities consumption which helps tenants become more profitable. Actively evaluating properties for efficiency upgrades and redevelopments. All new build to minimum 4 Star Green Star SA level, as certified through GBCSA on design and as built. - Annual Report 2014/5 23

24 Growthpoint s rationale and leadership drive Reducing tenant s cost of occupancy. Electricity from R8 to R39 per meter in 10 years. Not small % of rental any longer. Marketability staying in business and doing well long-term. Corporate reporting pressure from financial institutions for ESG disclosure. Hedge funds integrating ESG into portfolio risk ratings now. Green Star SA = stamp of quality. Minimum 4 Star Green Star for new build - 4 Star cost is marginal, it s a no-brainer. Productivity increases due to better indoor air quality also key. Green Lease Addendum full-scale implementation across portfolio. GBCSA s Energy & Water Benchmark is platform for tenant discussion Value creation through sustainability saving tenants R62m p.a.

25 Value of green buildings Lower operating costs and increased productivity for tenants Enhance marketability - differentiate yourself in tough times Secure good tenants earlier and keeping them longer Reduce liability and risk & attract incentives Command higher rents or prices - green premium Source: GBCSA Rands and Sense

26 As green becomes a necessity and not a luxury, demand for green building will rocket. Trevor King, Property Valuation Manager at Old Mutual Investment Group Source: GBCSA Rands and Sense 2011, and recent interview

27 It s very clear if we don t do it we won t future-proof our buildings and we will become uncompetitive. Chris Davey, Old Mutual Property Source: GBCSA Rands and Sense 2011

28 POLICY DIRECTION 28

29 Policy and planning trend/ direction going forward NATIONAL SA signed UNFCCC Paris Agreement, with 194 other countries Built Environment Performance Plan driven by Treasury SPLUMA full cost accounting Energy Performance Certificates for buildings within next 2 years National Building Regulations and Standards Act under review now. NRCS, DTI SANS Part XA for energy efficiency being updated SANS Part XB for water efficiency and XC for waste, on the cards Carbon Tax coming PROVINCE committed to minimum 4 Star Green Star SA, own efficiency, green leases and sustainable procurement drive. 29

30 Cities driving it internationally At COP21 in Paris in late 2015: 7000 cities and regions/ provinces committed to cutting carbon emissions mayors signed a declaration to transition to 100% Renewable Energy City part of C40 Climate Leadership Group and Compact of Mayors 30

31 Policy and planning direction going forward CITY OF CAPE TOWN Transit Oriented Development (TOD) Framework just approved Built Environment Performance Plan (BEPP) aligns grants spatially and enables urban development in the right places. Municipal Planning Bylaw update in 2016 includes additional use rights for 2 nd dwelling city-wide, and overlay zones with 3 rd dwelling rights. Spatial Development Framework update coming in 2017, with increased focus on TOD and resource efficiency Updated Energy and Climate Change Action Plan coming in 2016, based on 2040 Energy Vision Climate Change Policy at approval stage, coming in 2016 New Environmental Strategy at approval stage 2016, to replace 2001 IMEP. Principle: low impact urban design. 31

32 Core Principles of forthcoming Environmental Strategy Long-Term Approach: actions/ decisions don t undermine the long term benefits that natural environment provides, and needs and interests of future generations are considered and respected Resilience: enabling to withstand and mitigate negative impacts of environmental hazards, proactively reduce vulnerability, and protect the city s economy Ecosystems Approach: the contribution (and associated value) of ecological infrastructure and ecosystem goods and services recognised, protected, and, where possible, proactively restored Preventing, Minimising, and Mitigating Environmental Impacts: proactively preventing adverse environmental impacts, including pollution, waste generation and minimising impacts Resource Efficiency: resource efficiency and low-carbon development embedded in all our work Environmentally Sensitive and Low Impact Urban Design: urban design methodology that is environmentally sensitive and low impact, for long-term functionality of key ecological infrastructure

33 Policy and planning direction going forward CITY OF CAPE TOWN Development fiscal impact tool commissioned by SPUD, with urban efficiency part of it. To be piloted in Big new developments on public land will have resource efficiency related criteria Water Bylaw being updated Waste looking at asking for waste management plans for construction sites City getting 2 posts for resilience at high level. FINANCIERS Development financiers including climate change impacts into loan assessment criteria 33

34 RESOURCE EFFICIENT CRITERIA FOR DEVELOPMENT IN CAPE TOWN

35 Resource Efficient Criteria for Development New one-stop reference guide to policies, legal directives and guidelines (mandatory & voluntary) for developers, architects, draughts persons, planning professionals and home owners Aims to facilitate more resourceefficient development. Joint initiative from PBDM and ERMD, to be thoroughly promoted 7 categories, colour coded, FAQ format 35

36 Benefits of solar water heaters, now in building regs solar water heaters R274m in residents pockets per year Economic benefits of solar water heaters R810m in local economy 128 GWh saved per year 1287 job years 36

37 SOME TRENDS

38 Black River Park First office precinct in SA to receive GBCSA certified Green Star SA ratings for all its buildings. First commercial customer to feed electricity back to the grid and get paid for excess power generation

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43 Barangaroo South in Sydney, Australia 7.6 hectares mixed use urban waterfront development 90 retail, 900 apartments 50% of site is public open space Committed to carbon negative impact & zero waste 43

44 Elephant & Castle in London, UK Regeneration of historic area of central London 9.7 hectares. Mixed use with 2500 new homes 25% affordable

45 .. Not only good for local people but also good for our business as we can demonstrate that we create the best places and should be the partner of choice for future urban regeneration schemes. Matthew Smith from Lendlease, at Elephant & Castle, London

46 Where are we on this journey? SANS Part XA 4,5, 6 Star Green Star SA or equivalent Carbon neutral Carbon negative 46

47 Preferential financing USA banks, states offer energy efficiency/ green mortgages bigger loans for efficiency upgrade or already efficient property. USA national mortgage company Fannie Mae rewards greencertified multifamily properties with lower interest rate. Global trend reported by IFC/ Edge e.g. Green construction finance, green bonds and guarantees. DBSA issued R120 m Green Developer Finance to Nedbank 47

48 TOOLS AND RESOURCES

49 Tools and Resources Framework for Resource Efficient Criteria Development Requirements for Safe & Legal PV Installations Energy Service Companies City s and speak to about innovations. Shared savings, leasing options, selling energy services. Green Building Council SA - Green Star SA tools and certification, Energy & Water Benchmarking tool, training etc done Accredited Professional training, 1163 passed exam 321 in Western Cape. EDGE tool from IFC with GBCSA as local implementer, for housing Green Cape s Catalogue of Green Building Materials A Guide Towards SANS XA Compliance in the Western Cape (2013) 49

50 Tools and Resources Green Leasing Toolkits GBCSA s Green Leasing Toolkit USA California Sustainability Alliance Green Leases Toolkit (2007, 2009) London s Better Buildings Partnership Green Lease Toolkit (2009) Smart Building Handbook Green material certification SA 3rd party certification bodies: Ecospecifier - Ecostandard - Eco Exhibit at The Building Center in Northgate Estate, Ysterplaat. Permanent exhibition of building-related products, open 7 days a week. 50

51 How can we make greater progress on this, together?

52 DISCUSSION

53 Thank You For queries contact or