Clean Development Mechanism [CDM] and Leadership in Energy efficiency and Environmental Design [LEED]

LEED stands for Leadership in Energy and Environmental Design. The United States Green Building Council (USGBC) created LEED as a rating system for green building. Green building refers to the design, construction, and operation of buildings in an environmentally friendly way. LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality. The rating system is specific to the type of project being worked on. Some of the specific programs are LEED-New Construction, LEED-Existing Buildings, LEED-Commercial Interiors, LEED-Core and Shell, LEED-Homes, LEED-Neighborhood Development, LEED-Schools.

The rating systems are broken down into points for each type of credit. Certification levels within the systems are:

  • Minimum points: Certified
  • Second highest points: Silver
  • Third highest points: Gold
  • Fourth-maximum points: Platinum

A Green Home can have Tremendous Benefits, both Tangible and Intangible. The immediate and most tangible benefit is in the reduction in water and operating energy cost right from day one, during the entire life cycle of the building. The Energy saving could range from 20%-30% and Water savings is around 50%.

The above is very significant in terms of designing power backup and potable water storage alternatives especially in countries which have acute water shortage.

LEED certification gives international prestige & recognizance to a project taken up by the developer/owner. It has an assured market value and tax benefits are possible to acquire using certain technology, which is encouraged by the local government and Ministry of Renewable Energy- India.

Carbon Credit:

Carbon credits are generated by enterprises in the developing world that shift to cleaner technologies and thereby save on energy consumption, consequently reducing their green house gas emissions. For each ton of carbon dioxide (major GHG) emission avoided, the entity can get a carbon emission certificate which they can sell either immediately or through a futures market, just like any other commodity. The certificates are sold to entities in rich countries, like power utilities, which have emission reduction targets to achieve and find it cheaper to buy 'offsetting' certificates rather than do a clean-up in their own backyard. This trade is carried out under an UN-mandated international convention on climate change to help rich countries reduce their emissions.

CER via CDM:

Although not linked, but having achieved LEED parameters, "additionality" a prerequisite to achieving Carbon Credit funding is possible. Only those Companies that meet the UNFCCC norms and take up new technologies to reduce energy consumption are entitled to sell carbon credits.

There is a great need to reduce energy consumption in all sectors of the economy. Building Construction consumes vast natural resources, and building account for 40% of Global Energy use. The pre-construction phase is the optimal time to implement design with minimal costs. A change Agent is needed to make Energy Efficiency a Primary objective in Energy Efficient the Building Process. One of the possible change agents could be the upfront monetization of Carbon Reductions through energy efficient designs. Certified Emission Reduction [CER] is a tool to make such ventures possible. Some results indicate that savings realized during the first twenty years of operation can account for more than 15% of construction costs.