GBCSA NET ZERO/NET POSITIVE CERTIFICATION SCHEME

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1 GBCSA NET ZERO/NET POSITIVE CERTIFICATION SCHEME Draft definitions and methodology for comment & Call for Pilot Projects Rev 1 30 June 2017 Issued: June 2017 Report Prepared by: Tyrel Momberg, GBCSA Technical Manager Chris de Klerk, GBCSA Case Manager Report Reviewed by: Manfred Braune, GBCSA Chief Technical Officer

2 EXECUTIVE SUMMARY The GBCSA s purpose is to establish a built environment in which people and planet thrive. As a key instrument to assist in the pursuit of its purpose, the GBCSA uses rating tools that aim to transform the market place towards the cutting edge of sustainability. The main idea behind the current GBCSA rating tools is to use performance and prescriptive credit criteria to slowly push the building industry towards best sustainability practice, and over time becoming increasingly rigorous and stringent (every couple of years new, more challenging versions of the rating tools are released to continue to raise the bar/benchmarks and to continue to be at the cutting edge of sustainability). Net Zero/Net Positive is a methodology that can accelerate the end goal of complete market transformation. Net Zero/Net Positive is not about slowly pushing the built environment industry towards betterment, but rather about inspiring the end goal now. The GBCSA however does realize that not many projects will have net zero or net positive ambitions in the first few years of it being established as a formal certification path, but it is about industry leaders setting the example through projects that will inspire others to do the same, and will influence the market to change. These leading projects also become pioneers in design and technology advancement that others will look to for ideas and knowledge creation, finding practical solutions from these projects to what have seemed insurmountable challenges. This report looks at draft definitions of Net Zero/Net Positive for carbon, water, waste and ecology, as well as draft methodologies for calculating these and asks for stakeholder engagement on definitions and proposed calculation methodologies. Proposed Definitions: A Net Zero/Net Positive - Carbon building is defined as: A building that is highly energy-efficient, and the remaining energy use is from renewable energy, preferably on-site but also off-site where absolutely necessary, so that there are zero net carbon emissions on an annual basis (Net Zero), or if the energy from renewable energy results in more energy being produced than what is used on site (Net Positive).

3 A Net Zero/Net Positive - Water building can be defined as: A building that is designed, constructed and operated to greatly reduce total water consumption, and then use recycled and reused water such that the amounts of water consumed is the same as the amounts of water that is produced (Net Zero), or if the water recycled/ produced is greater than the water consumed (Net Positive). A Net Zero/Net Positive - Waste building can be defined as: A building that reduces, reuses, and recovers its waste streams to convert them to valuable resources with zero solid waste sent to landfills over the course of the year (Net Zero), or where the building can take waste from other sites and divert it for reuse, and not to landfill (Net Positive). (Applicable to both construction and buildings in operation) A Net Zero/Net Positive - Ecology building can be defined as: A building that does not reduce the ecological value of the site during development for Greenfield sites (Net Zero), and increases the ecological value of the site for brownfield sites, greenfield sites and/or existing developments (Net Positive). Proposed certification process: The proposed process is: 1. Projects are to submit the Net Zero/Net Positive submission to the GBCSA for assessment and certification. a. Projects can submit the Net Zero/Net Positive submission as a part of a Green Star, Edge or EWP project. (if submitted as a part of a Green Star/Edge/EWP submission, the Net Zero/Net Positive results will be assessed and certified at the same time as the Green Star/Edge/EWP project) b. Projects can submit Net Zero/Net Positive as a stand-alone submission. 2. The GBCSA will manage and own the assessment of these Net Zero/Net Positive submissions. 3. The GBCSA will issue the Net Zero/Net Positive certificate once the assessment is complete and the GBCSA is satisfied that the project has met the requirements. Feedback should be given by answering the questions at the end of this report and returning them via to Tyrel.momberg@gbacsa.org.za before the end of July If you think your project could be Net Zero or Net Positive please submit your interest in being a Pilot project to Tyrel.momberg@gbacsa.org.za before the end of July 2017.

4 Contents EXECUTIVE SUMMARY INTRODUCTION CERTIFICATION PROCESS METHODOLOGIES CARBON WATER WASTE ECOLOGY PROGRAMME QUESTIONS FOR STAKEHOLDERS... 25

5 1. INTRODUCTION The Green Building Council South Africa (GBCSA) is a membership based company that has three main functions; Advocacy, Training and Certification. The purpose of the GBCSA is to inspire a built environment in which people and planet thrive. Net Zero and Net Positive buildings have in the past seemed a somewhat distant reality and possibly left to the experimental or research type projects. There have been some wonderful inventions such as the Living Building Challenge and Passiv Haus, which have inspired and drawn some attention to the Net Zero and Net Positive buildings in the commercial and residential sector respectively, but not to the point where this has seen large scale global uptake. At the same time, the sad reality is that green building rating tools across the world are not widely enough used, and not enough buildings are reducing energy consumption and carbon emissions enough to avoid a likely global average temperature rise reduction. The agreement reached at COP21 brought new focus and attention to this aspect, where a commitment was made by 170 countries that they would work towards limiting global temperature rise to not more than 2 degrees, and strive towards 1.5 degrees. (UNFCC, 2016).

6 The South African Government is a signatory to this. South Africa s National Development Plan Vision 2030 details that the plan is to Progressively strengthen the energy efficiency criteria set out in the South African National Standard 204 to achieve a zero carbon building standard by sion%202030%20-lo-res.pdf WorldGBC Advancing Net Zero More specifically, South Africa s Net Zero/Net Positive Certifications scheme is a part of the WorldGBC s global project, Advancing Net Zero, which aims to ensure that all buildings are net zero carbon by The project will see participating Green Building Councils: launch national zero carbon certification programmes (either stand-alone programmes or additions to existing rating tools), create specialised net zero training for green building professionals, and support the development of net zero demonstration projects in their countries.

7 The Green Building Councils that are currently involved in the WorldGBC s Advancing Net Zero project include: The long-term targets of the WorldGBC s Advancing Net Zero project are: All new buildings must operate at net zero carbon from % of buildings must operate at net zero carbon by 2050 The trajectories for these targets are illustrated in the below figures taken from the WorldGBC report From Thousands to Billions - Coordinated Action towards 100% Net Zero Carbon Buildings By 2050 : net-zero-carbon-buildings-2050

8 The WorldGBC, through working with various GBC s have concluded that all net zero pathways for buildings should follow the following four principles: 1. Use carbon as the key metric; 2. Promote deep energy efficiency; 3. Establish a hierarchical preference for on-site renewable energy, off-site renewable energy, and then offsets; 4. Transparently disclose how each building achieves a carbon balance and promote continuous improvement of the building sector.

9 GBCSA Net Zero/Net Positive Certification scheme The GBCSA has since 2007 been developing and operating various certification schemes such as Green Star, Edge and Energy Water Performance (EWP) and is in the fortunate position to be able to launch a national zero/positive carbon certification programme as an addition to its existing rating tools (Green Star, Edge, EWP). The GBCSA tools do already recognise and reward projects that reduce their environmental impacts, and this report looks at how these Green Star tools can be used and adapted to calculate and recognise Net Zero/Net Positive projects. The WGBC s project only looks at carbon, but we propose that the GBCSA Net Zero/Net Positive Certification scheme in South Africa should be taken further and should address each of the below categories for reasons explained later in this report: CARBON WATER WASTE ECOLOGY The GBCSA Net Zero/Net Positive Certification scheme will award projects which go beyond the partial reductions (recognised in the current GBCSA tools), and have taken the initiative to reach the endpoint of completely neutralising (or positively redressing) their carbon emissions; water consumption; solid waste to landfill and their negative ecological impacts. This report will set out the proposed definitions and methodologies for stakeholder engagement, and your feedback is vital to help us define what Net Zero/Net Positive will mean in South Africa and how it can be certified. Additionally, this report will also be used by Pilot Projects that register with GBCSA for Certification in 2017 and 2018, as a guide to what the process would be. Net Zero/Net Positive Certification is one step to reaching the market, and the GBCSA also plans to provide training and advocacy to the market place to enable Net Zero/Net Positive to be understood and embraced by the country. Education and advocacy are essential to transforming the industry, because to achieve and value Net Zero and Net Positive buildings, some of our standard practices and limited perspective on value of green buildings and return on investments on property will have to be re-assessed and transform into the future reality,

10 rather than being left behind in a 20 th century model. The 21 st century model for valuing buildings will take into account carbon and environmental factors to a continuously increasing extent, to a point where more and more owners or shareholders will not want to invest or own buildings that are not Net Zero or Net Positive in various aspects. The road map going forward for GBCSA Net Zero/Net Positive Certification scheme to reach the market is set out in three stages: 1. Net Zero/Net Positive Certification 2. Net Zero/Net Positive Training 3. Net Zero/Net Positive Advocacy The GBCSA are proposing to take the Net Zero/Net Positive Certification scheme beyond carbon for South Africa, and to also look at Water, Waste & Ecology, as these are critical stress points in our country, for which some additional detail and definitions have been added below: CARBON WATER WASTE ECOLOGY

11 CARBON Currently producing 1/3 of the worlds CO2, the built environment needs to be at the forefront of attempting to drastically reduce the amount of CO2 generated. A Net Zero/Net Positive - Carbon building is defined as: A building that is highly energy-efficient, and the remaining energy use is from renewable energy, preferably on-site but also off-site where absolutely necessary, so that there are zero net carbon emissions on an annual basis (Net Zero), or if the energy from renewable energy results in more energy being produced than what is used on site (Net Positive). WATER Global water consumption has risen almost ten-fold since 1900, and many parts of the world are now reaching the limits of their supply. A Net Zero/Net Positive - Water building can be defined as: A building that is designed, constructed and operated to greatly reduce total water consumption, and then use recycled and reused water such that the amounts of water consumed is the same as the amounts of water that is produced (Net Zero), or if the water recycled/ produced is greater than the water consumed (Net Positive).

12 WASTE South African households, commerce, institutions and manufacturers generated 98 million tonnes of waste that was disposed to landfill in Impacts include contamination of surface and ground water resources and soil; emissions (methane, CO2 and others) due to natural decomposition processes; incineration and illegal burning; health and safety risks; unsightly landfill sites, etc. A Net Zero/Net Positive - Waste building can be defined as: A building that reduces, reuses, and recovers its waste streams to convert them to valuable resources with zero solid waste sent to landfills over the course of the year (Net Zero), or where the building can take waste from other sites and divert it for reuse, and not to landfill (Net Positive). (Applicable to both construction and buildings in operation) Image: (Gazasia, 2017) 1. (Department of Environmental Affairs, 2012) ECOLOGY At least 40 per cent of the world s economy and 80 per cent of the needs of the poor are derived from biological resources. In addition, the richer the diversity of life, the greater the opportunity for medical discoveries, economic development, and adaptive responses to such new challenges as climate change. The human species will not survive on this earth if ecosystems continue to decline to a point where the environment can no longer sustain human life. A Net Zero/Net Positive - Ecology building can be defined as: A building that does not reduce the ecological value of the site during development for Greenfield sites (Net Zero), and increases the ecological value of the site for brownfield sites, greenfield sites and/or existing developments (Net Positive).

13 From Net Zero to Net Positive This report looks at both Net Zero and Net Positive definitions and methodologies for Carbon, Water, Waste and Ecology to enable certification. The GBCSA request feedback on the definitions of these as well as feedback on the proposed thresholds. This feedback should be given by answering the questions at the end of this report and returning them via to before the end of July 2017.

14 2. CERTIFICATION PROCESS The Net Zero/Net Positive Certification scheme will use the same processes for certification as the current GBCSA rating tools, as illustrated below: The proposed process is: 1. Projects are to submit the Net Zero/Net Positive submission to the GBCSA for assessment and certification. a. Projects can submit the Net Zero/Net Positive submission as a part of a Green Star, Edge or EWP project. (if submitted as a part of a Green Star/Edge/EWP submission, the Net Zero/Net Positive results will be assessed and certified at the same time as the Green Star/Edge/EWP project) b. Projects can submit Net Zero/Net Positive as a stand-alone submission. 2. The GBCSA will manage and own the assessment of these Net Zero/Net Positive submissions. 3. The GBCSA will issue the Net Zero/Net Positive certificate once the assessment is complete and the GBCSA is satisfied that the project has met the requirements.

15 3. METHODOLOGIES 3.1. CARBON The GBCSA propose the below as the definition of a Net Zero/Net Positive Carbon Building: A building that is highly energy-efficient, and the remaining energy use is from renewable energy, preferably on-site but also off-site where absolutely necessary, so that there are zero net carbon emissions on an annual basis (Net Zero), or if the energy from renewable energy results in more energy being produced than what is used on site (Net Positive) CONSUMPTION LEVELS (Extent of scope i.e. what do we look at/measure?) Building Emissions - Building Occupant Emissions - Building + User Life Cycle Emissions - Building + User + Embodied + Renovation + Deconstruction Level 1 (Modelled) Net Zero - Building Emissions (BE) (Base Building i.e. non-tenant) Regulated emissions are those from fixed building services, i.e. Heating Cooling Ventilation Fixed Lighting (non- Tenant) Miscellaneous fans & pumps Hot water Vertical Transportation Net Positive Building Emissions - NA Level 2 (Modelled or Measured) Net Zero - Occupant Emissions (OE) (Operational) Unregulated emissions are those relating to energy used by the building occupants - including electrical appliances. (i.e. Base Building Emissions + Occupant Emissions). Net Positive Occupant Emissions - when 5% greater than 0 Level 3* (Modelled or Measured) Embodied Emissions (EE) Emissions associated with: Extraction and processing of raw materials Manufacturing of materials and equipment for use in the building Transport of materials and equipment to the site Construction and installation of the building structure, systems and equipment. Level 4* (Modelled or Measured) Renovation emissions (RE) Emissions associated with substantial changes to the building, usually involving the use of external energy-using equipment and building professionals Level 5* (Modelled or Measured) Deconstruction emissions (DE) Emissions from demolishing the building, transport during this process, and those resulting from reuse, recycling and final disposal of waste material Please note, Pathways 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site renewables *The current thinking of the GBCSA is that the SA market is not likely to adopt the process to include calculations for Levels 3, 4 & 5, but this will likely be adopted in the future and thus the full picture for Net Zero/Net Positive is shared.

16 CARBON New Build projects* can achieve Level 1 Net Zero certifications and/or Level 2 Net Zero/Net Positive certifications Existing buildings can achieve Level 2 Net Zero/Net Positive certification *Interior Fit out projects are to contact the GBCSA for a custom methodology. LEVEL 1 LEVEL 2 The Net Zero Carbon - Level 1: Building Emissions certificate will be valid for 3 years. The Net Zero Carbon - Level 1: Building Emissions certification is the Base Building Emissions (BE) (i.e. non-tenant), modelled over a period of one year. It is the Regulated Emissions from the fixed building services. MODELLED (for New Build/Major Refurbishments) The proposed methodology is to undertake the calculations as per the relevant Green Star New Build credit ENE 1 Modelling Protocol (excluding the allowance for the Tenant). This is demonstrated as the Base Building Carbon Emissions (actual building) in the Green Star Rating Tool as per the image below: The Net Zero/Net Positive Carbon - Level 2: Occupant Emissions certificate will be valid for 3 years. The Net Zero/Net Positive Carbon - Level 2: Occupant Emissions certification is the Operational Emissions (OE) (i.e. Building and Tenant), measured or modelled over a period of one year. It is the Unregulated Emissions relating to the energy used by the building occupants including electrical appliances (i.e. Base Building Emissions + Occupant Emissions). MODELLED MEASURED (for New Build/ Major Refurbishments) (for Existing Buildings) The proposed methodology is to undertake the calculations as per the The proposed methodology is to undertake actual measurements as relevant Green Star New Build credit ENE 1 Modelling Protocol (including the per the relevant Green Star EBP Credit ENE 1 Credit Criteria (i.e. actual allowance for the Tenant to be taken from actual Tenant specifications i.e meter readings) not assumed). This is demonstrated as the Carbon Emissions (actual building) in the Green star SA Rating Tool as per the image below: Pathway Net Zero Carbon - Level 1: Building Emissions is achieved when the Base Building Carbon Emissions (actual building) in the Green Star Rating Tool value is 0kgCO2/m2/year. This is as per Net Zero Preferred Path 1 and 2. Edge Tool For Edge users this will be possible using the Edge calculator which will include an indication of pathway 1, 2, 3 and 4. Net Zero Carbon - Level 2: Occupant Emissions is achieved when the Carbon Emissions (actual building) in the Green Star Rating Tool value is 0kgCO2/m2/year. Net Positive Carbon - Level 2: Occupant Emissions is achieved when the Carbon Emissions (actual building) in the Green Star Rating Tool value is 5% above zero. Net Zero Carbon - Level 2: Occupant emissions is achieved when it is measured to be 0kgCO2/m2/year. Net Positive Carbon - Level 2: Occupant emissions is achieved when it is measured to be is 5% above zero. Pathway Net Positive Carbon - Level 1: Building Emissions This is not applicable for Level 1, as Net Positive should include Tenant emissions, in our view. Alternatively, Offsite renewables and Offsets can be provided to the project to result in a total 0kgCO2/m2/year. This is as per Net Zero Preferred Path 3 and 4*. * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site renewables Net Zero Onsite vs. Offsite calculation ratio The Net Zero Onsite vs. Offsite calculation is the Ratio of the Offsite total kgco2/year to the Onsite total kgco2/year. The ratio is to be: - 20% Offsite total kgco2/year: 80% Onsite total kgco2/year This is as per Preferred Path 1 and 2. Alternatively, Offsite renewables and Offsets can be provided to the project to result in a total 0kgCO2/m2/year for Net Zero or in a total of 5% above zero for Net Positive. This is as per Preferred Path 3 and 4*. * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site renewables Net Zero/Net Positive Onsite vs. Offsite calculation ratio The Net Zero/Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total kgco2/year to the Onsite total kgco2/year. The ratio is to be: - 20% Offsite total kgco2/year: 80% Onsite total kgco2/year This is as per Preferred Path 1 and 2. Alternatively, Offsite renewables and Offsets can be provided to the project to result in a total 0kgCO2/m2/year for Net Zero or in a total of 5% above zero for Net Positive. This is as per Preferred Path 3 and 4*. * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site renewables Net Zero/Net Positive Onsite vs. Offsite calculation ratio The Net Zero/Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total kgco2/year to the Onsite total kgco2/year. The ratio is to be: - 20% Offsite total kgco2/year: 80% Onsite total kgco2/year

17 3.2. WATER The GBCSA propose the below as the definition of a Net Zero/Net Positive Water Building A building that is designed, constructed and operated to greatly reduce total water consumption, and then use recycled and reused water such that the amounts of water consumed is the same as the amounts of water that is produced (Net Zero), or if the water recycled/produced is greater than the water consumed (Net Positive). CONSUMPTION LEVELS (Extent of scope i.e. what do we look at/measure?) Building Consumption - Building Occupant Consumption - Building + User Life Cycle Consumption - Building + User + Embodied + Renovation + Deconstruction Level 1 - NA (Modelled) Net Zero - Building Consumption - NA Net Positive - Building Consumption - NA Level 2 (Modelled or Measured) Net Zero - Occupant Consumption (OE) (Operational) Unregulated consumption related to water used by the building occupants during operation - including all water appliances. Net Positive Occupant Consumption - when 5% greater than 0 Level 3* (Modelled or Measured) Embodied Consumption (EC) Water consumption associated with: Extraction and processing of raw materials Manufacturing of materials and equipment for use in the building Transport of materials and equipment to the site Construction and installation of the building structure, systems and equipment. Level 4* (Modelled or Measured) Renovation Consumption (RC) Water consumption associated with substantial changes/renovations to the building. Level 5* (Modelled or Measured) Deconstruction Consumption (DC) Water consumption associated with demolishment of the building, transport during this process, and the water consumption associated with the reuse, recycling and final disposal of waste material. Please note, Pathways 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site renewables *The current thinking of the GBCSA is that the SA market is not likely to adopt the process to include calculations for Levels 3, 4 & 5, but this will likely be adopted in the future and thus the full picture for Net Zero/Net Positive is shared. **We are not 100% sure what this Offset could be and we are open to any suggestions please see Question 10 below.

18 WATER New Build projects* can achieve Level 2 Net Zero/Net Positive certifications Existing buildings can achieve Level 2 Net Zero/Net Positive certification *Interior Fit out projects are to contact the GBCSA for a custom methodology. LEVEL 1 LEVEL 2 The Net Zero/Net Positive Water - Level 2: Occupant Consumption certificate will be valid for 3 years. The Net Zero/Net Positive Water - Level 2: Occupant Consumption certification is the Operational Consumption (i.e. Building and Tenant), measured or modelled over a period of one year. It is the Unregulated Consumption related to water used by the building occupants including all water appliances (i.e. Base Building Consumption + Occupant Consumption). MODELLED MODELLED (for New Build/ Major Refurbishments) The proposed methodology is to undertake the calculations as per the relevant Green Star New Build credit Wat 1 Modelling Protocol. (including the actual Tenant number of occupants to be taken from actual Tenant documentation i.e not assumed). MEASURED (for Existing Buildings) The proposed methodology is to undertake actual measurements as per the relevant Green Star Existing Building Performance Wat 1 credit criteria (i.e. actual meter readings) This is demonstrated as the Net Potable (Mains) Water Consumption in the Green Star Rating Tool as per the image below: Pathway Net Zero/Net Positive Water - Level 1: Building Consumption This is not applicable for Level 1, as Net Positive should include Tenant, in our view. Edge users at this stage do not have a net zero or net positive certification path. Net Zero Water - Level 2: Occupant Consumption is achieved when the Net Potable (Mains) Water Consumption in the Green Star Rating Tool value is 0L/day/m2. Net Zero Water - Level 2: Occupant Consumption is achieved when it is measured to be 0L/year. Net Positive Water - Level 2: Occupant Consumption is achieved when the Net Potable (Mains) Water Consumption in the Green Star Rating Tool value is 5% above zero. Net Positive Water - Level 2: Occupant Consumption is achieved when it is measured to be 5% above zero. This is as per Preferred Path 1 and 2. This is as per Preferred Path 1 and 2. Pathway Edge users at this stage do not have a net zero or net positive certification path. Alternatively, Offsite solutions and Offsets can be provided to the project to result in a total 0L/year for Net Zero or in a total 5% above zero for Net Positive. This is as per Preferred Path 3 and 4*. * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site solutions. Net Zero/Net Positive Onsite vs. Offsite calculation ratio The Net Zero/Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total L/year to the Onsite total L/year. The ratio is to be: 20% Offsite total L/year: 80% Onsite total L/year Alternatively, Offsite solutions and Offsets can be provided to the project to result in a total 0L/year for Net Zero or in a total of 5% above zero for Net Positive. This is as per Preferred Path 3 and 4*. * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site solutions. Net Zero/Net Positive Onsite vs. Offsite calculation ratio The Net Zero/Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total L/year to the Onsite total L/year. The ratio is to be: 20% Offsite total L/year: 80% Onsite total L/year

19 3.3. WASTE The GBCSA propose the below as the definition of a Net Zero/Net Positive Waste Building A building that reduces, reuses, and recovers its waste streams to convert them to valuable resources with zero solid waste sent to landfills over the course of the year (Net Zero), or where the building can take waste from other sites and divert it for reuse, and not to landfill (Net Positive). (Applicable to both construction and buildings in operation) CONSUMPTION LEVELS (Extent of scope i.e. what do we look at/measure?) Construction Waste - Building Occupant Waste - User(s) Life Cycle Waste - User + Embodied + Renovation + Deconstruction Level 1 (Measured) Net Zero Construction Waste (CW) Waste from the construction of the New build / Major Refurbishment project that avoids landfill Level 2 (Modelled or Measured) Net Zero Occupant Waste (OE) Existing Building Operational waste generated by the building during operation that avoids landfill Level 3* (Modelled or Measured) Embodied Waste (EE) Waste consumption associated with: Extraction and processing of raw materials Manufacturing of materials and equipment for use in the building (excludes any waste recycled under Level 1) Level 4* (Modelled or Measured) Renovation Waste (RE) Waste associated with substantial changes/renovations to the building. Level 5* (Modelled or Measured) Deconstruction Waste (DE) Waste associated with demolishment of the building, including the reuse, recycling and final disposal of building material Net Positive Construction Waste when 5% greater than 0 (which includes construction waste from other sites) Net Positive Occupant Waste - when 5% greater than 0 (which includes operational waste from other sites) Please note, Pathways 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site renewables *The current thinking of the GBCSA is that the SA market is not yet capable of undertaking the necessary calculations for Levels 3, 4 & 5, but this will be the future and thus the overall picture is to be illustrated to demonstrate the complete picture. **We are not 100% sure what this Offset could be and we are open to any suggestions please see Question 10 below.

20 WASTE New Build projects* can achieve Level 1 Net Zero/Net Positive certifications New Build projects* and Existing buildings can achieve Level 2 Net Zero/Net Positive certification *Interior Fit out projects are to contact the GBCSA for a custom methodology. LEVEL 1 LEVEL 2 The Net Zero/Net Positive Waste - Level 1: Construction Waste certificate will be valid for 3 years. The Net Zero/Net Positive Waste - Level 1: Construction Waste certification is the Construction Waste, measured over the life of the construction period. The Net Zero/Net Positive Waste - Level 2: Occupant Waste certificate will be valid for 3 years. The Net Zero/Net Positive Waste - Level 2: Occupant Waste certification is the Operational Waste (i.e. Tenant), measured or modelled over a period of one year. MEASURED (for New Build/ Major Refurbishments) The proposed methodology is to undertake actual measurements of the Construction Waste as per the relevant Green Star New Build Man 7 credit criteria. MODELLED (for New Build/ Major Refurbishments) The proposed methodology is to undertake calculations of the predicted Occupant Waste as per the relevant Green Star New Build credit Mat 1 Recycling Waste Storage TC MAT1-T-OB that allows waste professionals to calculate waste volumes and demonstrate % of waste that will avoid landfill. MEASURED (for Existing Buildings) The proposed methodology is to undertake actual measurements of the Occupant Waste as per the relevant Green Star Existing Building Performance credit EB-MAT-2 Solid Waste Management credit criteria. Pathway Net Zero Waste - Level 1: Construction Waste is achieved when it is measured to be 0kg/year to landfill. Net Positive Waste - Level 1: Construction Waste is achieved when it is measured to be 5% above zero. (which includes construction waste from other sites) Net Zero Waste - Level 2: Operational Waste is achieved when it is calculated to be 0kg/year to landfill. Net Positive Waste - Level 2: Operational Waste is achieved when it is calculated to be 5% above zero. (which includes operational waste from other sites) Net Zero Waste - Level 2: Operational Waste is achieved when it is measured to be 0kg/year to landfill. Net Positive Waste - Level 2: Operational Waste is achieved when it is measured to be 5% above zero. (which includes operational waste from other sites) This is as per Preferred Path 1 and 2. This is as per Preferred Path 1 and 2. This is as per Preferred Path 1 and 2. Alternatively, Offsite solutions and Offsets can be provided to the project to result in a total 0kg/year to landfill for Net Zero or in a total of 5% above zero for Net Positive. This is as per Preferred Path 3 and 4*. Alternatively, Offsite solutions and Offsets can be provided to the project to result in a total 0kg/year to landfill for Net Zero or in a total of 5% above zero for Net Positive. This is as per Preferred Path 3 and 4*. Alternatively, Offsite solutions and Offsets can be provided to the project to result in a total 0kg/year to landfill for Net Zero or in a total of 5% above zero for Net Positive. This is as per Preferred Path 3 and 4*. Pathway * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site solutions. Net Zero/Net Positive Onsite vs. Offsite calculation ratio The Net Zero/Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total kg/year (not sent to landfill) to the Onsite total kg/year (not sent to landfill). The ratio is to be: - 20% Offsite total kg/year (not sent to landfill): 80% Onsite total kg/year (not sent to landfill) * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site solutions. Net Zero/Net Positive Onsite vs. Offsite calculation ratio The Net Zero/Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total kg/year (not sent to landfill) to the Onsite total kg/year (not sent to landfill). The ratio is to be: - 20% Offsite total kg/year (not sent to landfill): 80% Onsite total kg/year (not sent to landfill) * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site solutions. Net Zero/Net Positive Onsite vs. Offsite calculation ratio The Net Zero/Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total kg/year (not sent to landfill) to the Onsite total kg/year (not sent to landfill). The ratio is to be: - 20% Offsite total kg/year (not sent to landfill): 80% Onsite total kg/year (not sent to landfill)

21 3.4. ECOLOGY The GBCSA propose the below as the definition of a Net Zero/Net Positive Ecology Buildings A building that does not reduce the ecological value of the site during development for Greenfield sites (Net Zero), and increases the ecological value of the site for brownfield sites, greenfield sites and/or existing developments (Net Positive). CONSUMPTION LEVELS (Extent of scope i.e. what do we look at/measure?) Building Ecology - Building Occupant Ecology - User Level 1 (Modelled) Net Zero - Site Ecology Greenfield site Net Zero: There is no net reduction in the ecological value of the site from pre to post development. Level 2 (Modelled or Measured) Net Zero - Occupant Ecology - NA Level 3 Not applicable Level 4 Not applicable Level 5 Not applicable Brownfield site Net Zero - NA Net Positive - Site Ecology Greenfield site Net Positive: There is a positive increase in the ecological value of the site from pre to post development. (+2 from calculator) Net Positive - Occupant Ecology There is a positive increase in the ecological value of the existing site over time (+2 from calculator) Please note, Pathways 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site renewables Brownfield site Net Positive: There is a positive increase in the ecological value of the site as a result of development. (+3 from calculator)

22 ECOLOGY New Build projects* can achieve Level 1 Net Zero/Net Positive certifications Existing buildings can achieve Level 2 Net Positive certification *Interior Fit out projects are to contact the GBCSA for a custom methodology. LEVEL 1 LEVEL 2 The Net Zero/Net Positive Ecology - Level 1: Site Ecology certificate will be valid for 3 years. The Net Zero/Net Positive Ecology - Level 1: Site Ecology certification is the Site Ecology, modelled over the life of the construction period (i.e. pre to post development). The Net Positive Ecology - Level 2: Occupant Ecology certificate will be valid for 3 years. The Net Positive Ecology - Level 2: Occupant Ecology certification is the Occupant Ecology, measured on the ecological increases to the existing site. MODELLED (for New Build/ Major Refurbishments) The proposed methodology is to model the Site Ecology as per the relevant Green Star New Build Eco 4 credit criteria. Net Zero Ecology - Level 1: Site Ecology is achieved when it is modelled to be a zero change in the net ecological value of the site for a Greenfield site. MODELLED (for New Build/ Major Refurbishments) Net Zero Ecology - Level 2: Occupant Ecology NA MEASURED (for Existing buildings) The proposed methodology is to measure the Occupant Ecology as per the relevant Green Star New Build Eco 4 credit criteria at date of original Occupation (for Land Types Before Construction ), and then measure the current Occupant Ecology (for Land Types After Construction ) Net Zero Ecology - Level 2: Occupant Ecology NA Pathway Brownfield site Net Zero - NA Net Zero Level 1 Net Positive Ecology Level 1: Site Ecology is achieved when it is modelled to be a positive change in the net ecological value of the site. Net Positive Ecology - Level 2: Occupant Ecology NA Net Positive Ecology - Level 2: Occupant Ecology is achieved when it is measured to be a positive change in the net ecological value of the site (to achieve 2 points in the calculator). Greenfield site Net Positive - There is a positive increase in the ecological value of the site from pre to post development. (to achieve 2 points in the calculator) Pathway Brownfield site Net Positive - There is a positive increase in the ecological value of the site as a result of development. (to achieve 3 points in the calculator) This is as per Preferred Path 1 and 2. Alternatively, Offsite solutions and Offsets can be provided to the project to result in a total Net Zero/Net Positive change in the net ecological value of the site. This is as per Net Preferred Path 3 and 4*. * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site solutions. Net Zero/Net Positive Onsite vs. Offsite calculation ratio The Net Zero/Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total change in ecological value to the Onsite total change in ecological value. The ratio is to be: - 20% Offsite total: 80% Onsite total Net Positive Level 2 This is as per Preferred Path 1 and 2. Alternatively, Offsite solutions and Offsets can be provided to the project to result in a total a Net Positive change in the net ecological value of the site. This is as per Preferred Path 3 and 4*. * Please note, Paths 3 & 4 will only be open to projects once the project team have reached >80% of the reduction via efficiency/on-site solutions. Net Positive Onsite vs. Offsite calculation ratio The Net Positive Onsite vs. Offsite calculation is the Ratio of the Offsite total change in ecological value to the Onsite total change in ecological value. The ratio is to be: - 20% Offsite total: 80% Onsite total

23 4. CERTIFICATION RECOGNITION In line with the Current Green Star brand and identity, buildings achieving certification of Net Zero/Net Positive will receive plaques that will showcase their achievements and their leadership in the industry. Below are some initial designs for the plaques to illustrate how the plaque will be structured to include the type of certification, i.e. Net Zero or Net Positive, as well as which level of certification that is achieved. These examples are only some of certifications available, and will change depending on the certification level achieved. Building name could also go in the bottom left block instead of top right block.

24 5. PROGRAMME Action Draft definitions & methodology for Stakeholder Engagement Stakeholder Engagement (and call for Pilot projects) Date June 2017 June - Oct 2017 Education Net Zero/Net Positive Workshop (first course launched) July 2017 Pilot Net Zero/Net Positive Certification scheme launch Oct 2017

25 6. QUESTIONS FOR STAKEHOLDERS QUESTION 1: The GBCSA asked some developers and clients if carbon is the correct metric to use, or if the market place would understand energy better. The responses were varied but principally they replied that the market does not really understand either properly, and therefore we should use carbon to align ourselves with what is being proposed internationally. Do you agree that Carbon is the correct metric to be used? QUESTION 2: Do you agree with the proposed Certification process? (Provide a reason for your response and/or suggest an alternative) Do you agree that Net Zero submissions can also be certified as stand-alone projects i.e. not as a part of a Green Star project? (Provide a reason for your response) QUESTION 3: Do you agree with the proposed Definitions for each of the below? (Provide a reason for your response and/or suggest an alternative) 3.1 Carbon 3.2 Water 3.3 Waste 3.4 Ecology QUESTION 4: Do you agree with the proposed Consumption Levels for each of the below? (Provide a reason for your response and/or suggest an alternative) 4.1 Carbon 4.2 Water 4.3 Waste 4.4 Ecology QUESTION 5: Do you agree with the proposed Production Pathways for each of the below? (Provide a reason for your response and/or suggest an alternative) 5.1 Carbon 5.2 Water 5.3 Waste 5.4 Ecology

26 QUESTION 6: Do you agree with the proposed gateway that Production Pathways 3 & 4 (Offsite solutions and Offsets) can only be provided once the project team have reached >80% of the reduction via efficiency/on-site solutions, for each of the below? (Provide a reason for your response and/or suggest an alternative) 6.1 Carbon 6.2 Water 6.3 Waste 6.4 Ecology QUESTION 7: Do you agree with the proposed Methodologies for each of the below? (Provide a reason for your response and/or suggest an alternative) 7.1 Carbon Level 1 Modelled Level 2 Modelled Level 2 Measured 7.2 Water Level 2 Modelled Level 2 Measured 7.3 Waste Level 1 Measured Level 2 Modelled Level 2 Measured 7.4 Ecology Level 1 Modelled Level 2 Modelled QUESTION 8: Do you agree with the proposed idea of only certifying Net Zero at the moment (except Net Positive Ecology for brownfield and existing sites), for each of the below? (Provide a reason for your response and/or suggest an alternative) 8.1 Carbon 8.2 Water 8.3 Waste QUESTION 9: Do you agree with the proposed idea of certifying using the term Net Zero for both Net Zero and Net Positive, or should Net Positive be separately recognised. Certification would be for the following: Net Zero : Level 1 Net Zero : Level 2 Net Positive : Level 1 Net Positive : Level 2 Please provide your thoughts on this below as well as thoughts on plaque design in section 4: Certification Recognition.

27 QUESTION 10: For Offsets for water and waste; do you have any suggestions on what these Offsets could be or how it might work: Net Positive : Level 1 Water offsets Waste offsets Please provide your thoughts on this below.