Affordable Path to Green Certification for Nigerian Developers

Terhemen-Mark Chieshe

As a major emitter of greenhouse gases, the construction industry has a huge role to play in the global effort to combat climate change. This has meant stakeholder-wide coordination to rethink building design, construction, and operations to optimize energy and water efficiencies and reduce the industry’s negative impact on the environment.

The good news is that the construction industry has made significant progress over the past three decades in charting an alternate and sustainable path.

Rapid advances in green building technologies, advanced resource efficiency methods and a mix of transparent and quantitative certification programs present a viable and measurable path toward a zero-carbon construction industry.

On the technology front, the use of improved energy efficient measures is enabling property developers to deliver future-ready buildings with energy and water efficiencies of up to 40 per cent and near zero negative impact on the natural environment. Furthermore, the additional cost of building green is on a steady decline to comparable standards. Efficiency measures include solar thermal systems, heat pumps, low-flow water fittings, solar PV systems, and heat pump for hot water, amongst others.

These technology efficiencies and the resulting cost reductions have led to a spike in global demand for sustainable buildings and a proliferation of green building certification programs. The certification programs use clearly defined metrics to prove a buildings compliance with specified energy efficiency standards – reduction in energy and water usage, and embodied energy while projecting the impact on the natural environment. Certification helps property owners achieve brand differentiation; enhance marketability and their ability to raise funding from institutional investors that are increasingly making sustainability a key criterion.

One of the leading international green certification systems is EDGE (Excellence in Design for Greater Efficiencies), an innovation of the IFC, a member of the World Bank Group. The free EDGE App focuses on empowering developers of residential and commercial buildings to deliver resource-efficient buildings in a fast, easy, and affordable way. EDGE is a key part of IFC’s efforts to lead a sustainable future by encouraging construction developers worldwide to build a safer climate and currently in use in over 140 countries.

EDGE – Leading a Green Transformation

In Nigeria, EDGE is a green certification system that is quickly gaining grounds and has certified projects in Lagos, Abuja, Maiduguri and Benin City. Over the past four years EDGE has supported several forward-looking pioneers of green buildings to lead a profitable transformation of the country’s real estate sector. Some of the early adopters include Alphamead Development Company, Echostone, Alliance Capital, Greenage, Modern Shelter, MISA, American University, Karmod Nigeria, Sachela Limited and Student Accommod8. These EDGE Green Pioneers are delivering greener and energy efficient buildings in different niches that range from residential accommodation, student housing, high performance office buildings, and mass housing and witnessing impressive results. From helping them achieve corporate social responsibility as climate conscious entities to utility cost savings to occupants, these early green pioneers are at the forefront of the transformation that is set to take hold on the Nigerian real estate scene. Their experiences should encourage more developers to build green.

Like the early adopters, prospective Nigerian property developers planning to make a smooth, informed and value-based transition to green buildings have a reliable and competent partner in EDGE. They can leverage the global industry depth, strengths, and benefits of EDGE certification to chart a sustainable path for their business.

How EDGE Works

EDGE has three key components: First is a web-based software application that is available for free at edgebuildings.com. The EDGE platform allows design teams to quickly determine the optimum combination of building design strategies for the best return on investment. Within minutes, a building designer can determine the optimum combination of design strategies for the best return on investment. Based on a building’s parameters, the EDGE software discovers energy- and money-saving design opportunities through region-specific and use-based analysis. As a free design tool, EDGE presents incremental costs, savings, and payback periods for green building measures (e.g., low flow taps and solar connectors), helping developers and buildings make the business case for green building.

The second component is a global standard. EDGE has three global levels of certification. The first requires that a building achieve a minimum projected reduction of 20 per cent in energy and water use, and embodied energy in materials as benchmarked against a standard building. The second level is the EDGE Advanced certification that requires 40 per cent or more on-site energy savings. The third is the Zero Carbon certification. 100 per cent renewables on-site or off-site or purchased carbon offsets to top off at 100 per cent.

The third aspect is the EDGE Certification system. EDGE uses reputable independent third parties of EDGE certification to validate the green credentials of a building’s sustainable achievements at a modest cost for financial and community stakeholders. In Nigeria, EDGE uses Sintali-SGS, https://www.sintali.com/ as an exclusive provider of its certification services. They work with EDGE clients to evaluate the green building credentials of projects, conduct necessary tests, and provide the certification.

EDGE green building certification has two stages: design and construction. Each stage mirrors the other, except that a site audit is required at the construction stage. Upon completion of the design stage, a preliminary EDGE certificate is awarded. Upon completion of the construction stage, a final EDGE certificate is awarded. The cost of certification covers both stages. If a project is already built, only the construction stage of certification is required.

There are many reasons why Nigerian developers should build green using EDGE. First, securing EDGE certification for their building projects at the design stage would help them to position their companies at the forefront of change and attract better financing. This includes access to new sources of financing, such as green bonds, green mortgages, and better loan rates from institutional lenders and financial institutions committed to a sustainable future.

Second, EDGE certification would empower property developers in Nigeria, especially in cities such as Lagos, Abuja and Portharcourt, with the measurable clarity to build and deliver a new breed of resource efficient and high-performance buildings that meet the changing taste and preference of high-profile clients that value sustainability and a commitment to climate change. By labeling their properties as green and EDGE-Certified, it would help them differentiate themselves in the competitive market, lead to higher sales and significant increase their profitability.

Third, they would be investing in real buildings that are future ready and not threatened by the inevitable transition to a zero-carbon real estate future.

What is clear is that the global building and construction sector, which Nigeria is a key part of, is undergoing a historic sustainability transition. Property developers that would dominate the emerging sector, tap the immense opportunities, and reap financial gains are those that are quick to join the green building movement. It is time for more players in Nigeria’s construction industry to ditch traditional building methods and embrace sustainable ones. It is good for the climate and good for their bottom lines.

Chieshe is a housing policy and green buildings analyst based in Abuja
mchieshe@gmail.com