Climate change is a pressing and existential threat facing governments worldwide. According to a report¹ by the UN Office for Disaster Risk Reduction, climate change has spurred a doubling of natural disasters in the last twenty years, claiming 1.23 million lives, affecting 4.2 billion people and costing the global economy US$ 2.97 trillion.

Singapore is not insulated from the impact of climate change. The mean sea level in the Straits of Singapore has also increased at the rate of 1.2mm to 1.7mm per year between 1975 and 2009. According to Singapore’s National Climate Change Secretariat (NCCS), this rise in sea level poses the most immediate threat to Singapore because much of the island nation lies only 15 m above sea level.

In 2009, Singapore pledged an attempt to slow down the effects of global warming. Focused on reducing the amount of greenhouse gas emitted per dollar GDP, Singapore pledged that by 2020, the country would reduce its emissions by 16% from business as usual levels. The pledge to reduce emissions was further increased to 36% by 2030 as compared to what was seen in 2005. As part of the nation’s efforts to achieve this pledge, the Building Construction Authority (BCA) launched the BCA Green Mark Scheme in January 2005 to promote sustainability in the built environment.

How Green Buildings can help the environment

Having more sustainable buildings is a viable solution to fight climate change. Globally, buildings account for 40% of annual energy consumption and up to 30% of all energy-related greenhouse gas emissions². Collectively, the real estate sector is responsible for about 40% of global resource use, including 12% of all freshwater use, and it produces up to 40% of all solid waste. Add in other infrastructure and activities that are associated with buildings, and the number jumps even higher. By building sustainably, we can reduce or eliminate negative impacts on the environment by using less water, energy or natural resources.

LEED (Leadership in Energy and Environmental Design) certified buildings in the United States and other countries have been shown to consume 25% less energy and 11% less water than non-green buildings. In Australia, buildings with the Green Star Certification produce fewer greenhouse gas emissions than average Australian buildings and consume 51% less potable water than if they had been built to meet minimum industry requirements.³

Singapore is also focused on greening existing building stock with its Green Building Master Plans. In 2005, the number of green buildings in Singapore was 17. This number increased to more than 2,100 in 2014, which translates to about 25% of the total built-up area in Singapore. Singapore plans to accelerate the pace of green building development so that it can meet its target of “at least 80% of the buildings in Singapore to be green by 2030”.

The economic benefits of sustainable buildings

Building sustainable developments not only mitigates climate change, but also provides economic benefits to landlords and occupiers. Occupiers benefit from cost savings on utility bills through energy and water efficiency. With the new carbon tax in place in Singapore, residing in a green building will further add to savings for occupiers. From 2020, all facilities producing 25,000 tonnes of greenhouse gas emissions a year have to pay a carbon tax. This measure will translate to about 1 percent of total electricity and gas expenses on average⁴.

Besides cost savings, researchers found that the premium for green buildings realised at the resale stage is about 10%, using data from 2000 to 2010 in Singapore.⁵ In an article published in the American Economic Review, researchers found that office buildings with a green rating in the United States achieved rental rates that were roughly 3% higher per square foot than otherwise identical buildings in 2009. Likewise, selling prices of green buildings were higher by about 16%.⁶ Another group of researchers used a sample of apartment transactions from Helsinki, Finland, from 2009 to 2012 to investigate the influence of energy ratings on housing sale prices. They also found a significant premium for apartments with a higher energy-efficient rating⁷.

Green Buildings in Singapore: How to identify them

The green rating for buildings in Singapore can be ascertained by its BCA Green Mark Award, which sets parameters and establishes indicators to guide the design, construction and operation of buildings towards increased energy effectiveness and enhanced environmental performance. It comprises a number of distinct rating tools for new buildings, existing buildings, non-residential, residential and landed housing, among others.

Under the assessment framework, points are awarded for incorporating sustainable design features and practices, which would add up to a final Green Mark score. There are five sections under the criteria, namely climatic responses design – or designs that optimise indoor environment through understanding of the site’s weather conditions; building energy performance, advanced green efforts, resource stewardship and smart and healthy building. The total number of points obtained provides an indication of the environmental friendliness of the building design and operation. The score will determine the eligibility for certification under one of the ratings, namely BCA Green Mark, BCA Green Mark Gold, Gold Plus or Platinum. The BCA Green Mark Platinum is the highest accolade awarded to green developments.

Guoco Tower, which stands out as one of the most environmentally friendly buildings in Singapore, was a recipient of the BCA Green Mark Platinum rating for its office and retail components. It also achieved the LEED platinum certification, making it one of a handful of buildings in Singapore to achieve both standards

With a target to conserve 35% of its water usage, Guoco Tower has a three-step water management strategy to minimise water wastage, including having systems to harvest rainwater and condensate from air-conditioning. The development also achieves energy savings of 32%, thanks to the installation of some 3,800 sq m of solar photovoltaic cells and shading panels fitted to limit the direct solar gain and glare to the building’s glass windows.

At the BCA Awards 2020, GuocoLand’s Guoco Midtown and Midtown Bay achieved the Green Mark Platinum award. The transformative, integrated development and its residential component highlighted GuocoLand’s continued commitment to create a sustainable environment. Guoco Midtown has an extensive landscape area with a green plot ratio of 7.08, enhancing biodiversity and providing visual relief to staff, residents and the public. The development is designed to minimise heat gain, with sun shadings applied to achieve maximum comfort. The lighting design ensures efficient use of electricity through LED lightings and motion sensors. To reduce water usage, the building recovers condensate from its AHUs for its cooling tower. Likewise, Midtown Bay is designed to optimise the natural ventilation and daylighting within the development. There is also extensive integration of biophilic elements within the common facilities and throughout the development. GuocoLand’s consistent commitment to its sustainability journey is further recognised through the BCA Green Mark Champion Award it won in 2020. The award is given to developers who have achieved a substantial number of Green Mark buildings at Gold Level or higher.

Greater demand for green buildings

Awareness for sustainability and climate change has increased significantly due to extreme temperatures recorded overseas, education and activism. According to a survey by NCCS, more than 9 in 10 Singapore Residents have heard or come across the terms “Climate Change” and Global Warming” in 2019, up from 80.6% in 2015. About 8 in 10 Singapore Residents are prepared to play their part towards a low carbon Singapore, even if they are expected to bear some additional costs and inconvenience as consumers. Additionally, the respondents believe that the Government, businesses and Individuals all have a part to play in tackling climate change.

As consumers increasingly embrace a more sustainable lifestyle, they expect products and brands to match their values. We already see this in the retail sector. According to recent research from NYU Stern’s Center for Sustainable Business into sales of consumer-packaged goods in the United States, 50% of growth between 2013 and 2018 came from products marketed as sustainable. In response, more firms are shifting to be more environmentally sustainable. Residing in office buildings that are certified green is also becoming a necessity for many firms because of the branding they portray to the public.

The residential sector is expected to follow the same trend. As global awareness of climate change and the demand to act gain traction, we expect more home buyers to choose green homes that not only help them save but, fundamentally, align with their values. Purchasing a green home will soon be not just a necessity for Singaporeans but a way of life.

¹The Human Cost of Disasters 2000-2019

²United Nations Environment Programme-Sustainable Buildings and Climate Initiative

³World Green Building Council, https://www.worldgbc.org/benefits-green-buildings

⁴Straits Times, 19 Feb 2018. https://www.straitstimes.com/singapore/singapore-budget-2018-carbon-tax-of5-per tonne-of-greenhouse-gas-emissions-to belevied#:~:text=SINGAPORE%20%2D%20All%20facilities%20producing%2025%2C000,emission %20from%202019%20to%202023.

⁵Yongheng Deng, Jing Wu,Economic returns to residential green building investment: The developers' perspective, Regional Science and Urban Economics,Volume 47,2014,Pages 35-44.

⁶Eichholtz, Piet, Nils Kok, and John M. Quigley. 2010. "Doing Well by Doing Good? Green Office Buildings." American Economic Review, 100 (5): 2492-2509.

⁷Franz Fuerst, Elias Oikarinen, Oskari Harjunen, Green signalling effects in the market for energy-efficient residential buildings, Applied Energy,Volume 180, 2016,Pages 560-571.