Introducing Resource Efficiency Technologies in the Indian Construction Sector: Policy Perspective
 

The construction sector is increasingly driven by growing urbanisation, rising incomes and increasing population. The sector is expected to grow by over 70% since 2011–12 to reach Rs. 13,590 billion by 2016–17 [ASA & Associates, 2012]. The growth reflects an increase in absolute material consumption. Between 1997 and 2007, material consumption grew by over one billion tonnes. In 2007, construction was the second largest sector with regard to material consumption, accounting for around 20% of all material demand [SERI, 2012]. It was expected that by 2014, material consumption in the construction sector would have outweighed material consumption in the agricultural sector, the sector with the highest level of material consumption so far [IGEP, 2013].

Higher extraction and consumption of natural resources brings in global and regional environmental problems, such as climate change, deforestation, loss of biodiversity and pollution [Muilerman, 2001]. It also leads to higher extraction costs as resources get harder to reach, thus translating into increased resource costs often making businesses financially unsustainable. The current path adopted by the sector and the anticipated growth necessitate a look at approaches for resource efficiency.

Approaches for Resource Efficiency

Unsustainable consumption causes resource scarcity, thereby increasing prices and consequently leading to social conflicts. These approaches aim at decoupling construction from the exploitation of natural resources; providing an opportunity for leapfrogging from an ecological overshoot to sustainable economic production systems. They have co-benefits in terms of spurring on the local economy, creating jobs while meeting demand for goods and services.

Life Cycle and Systems Thinking

Life-cycle thinking considers not only environmental and socio-economic impacts of the product during its use, but also the resource consumption and pollution associated with all stages of production and end-of-life management [UNEP, 2011]. The Systems Approach addresses underlying causes of an identified problem rather than alleviating immediate symptoms, thus being aware of and trying to avoid any problem or burden shifting that may occur. Construction material and technology choices made using this approach will lay out the trade-offs of the choice at the design stage itself promoting resource efficient decision making.

Cleaner Production

The United Nations Environment Programme (UNEP) defines Cleaner Production as the continuous application of an integrated preventive environmental strategy to processes, goods and services to increase overall efficiency and reduce risks to humans and the environment. This preventive approach integrates a strengthened lifecycle perspective, which looks at the use of resources from the point of extraction to the point of disposal, taking into account the critical issue of resource scarcity. Measures include adopting environmentally sound technologies (Vertical Shaft Brick Kilns), improving production methods (Retrofitted Zig-Zag Kilns) and substituting raw materials with secondary streams (Flyash and Waste Based Building Blocks). Besides the environmental benefits, this approach leads to economic gains for the process as a result of efficiency linked savings of energy and resources.

Design for Sustainability

Design for Sustainability aims to alter the stages of the production process to create a product of enhanced quality, functionality and environmental performance. It takes eco-design approaches further and addresses the social dimension of sustainability in the design process, encompassing broader issues to meet the needs with minimal environmental and social impacts, rather than focusing on improving existing products. Measures include bio-mimicry, smart homes, etc. For example, termite mound architecture rethinks conventional approaches by improving thermal comfort of structures while keeping energy costs low. However, a lot needs to be done before this can be mainstreamed.


Use of Flyash in India - How Policy Tools Promote Resource Efficiency in Construction

Flyash is a waste stream from thermal power plants. As a secondary material, it has successfully been mainstreamed in cement and brick production replacing scarce primary raw materials.

The Bureau of Indian Standards (BIS) has issued production and performance standards for flyash bricks and Portland Pozzolana cement (PPC). The use of these materials earns green building credits in the national green building certification programme – GRIHA (voluntary). Inclusion in the Central and State Schedule of Rates and a mention in tender documents ensure that it can be procured preferentially.

There is a ban on red bricks 100 km around power plants where flyash is readily available, thus promoting flyash products. Capital subsidies are offered to new brick entrepreneurs in many states to eliminate the liquidity barrier. Workshops and awareness drives organised for users and entrepreneurs have helped disseminate the benefits of the technology.

Due to these efforts, flyash bricks now occupy close to 10% of the market while PPP occupies 75% of the cement market share.
 

Policy Tools to Stimulate Resource Efficiency

Resource efficiency can be imbibed in mainstream construction if these approaches are adopted while making technical decisions during planning, implementation and operation stages. The challenge is in ascertaining how these appropriate technical choices are made by decision makers. This can be encouraged by policy tools as described below:

Building Codes and Material Standards
Incorporating resource efficiency into existing building codes can be used to set building performance levels (for walls, roofing, windows, doors). Performance standards also need to be established for new materials that use secondary wastes (fly ash, C&D waste, slag, etc.) or other cleaner production technologies. Environmental quality standards that specify a minimum desired level of environmental quality, or the maximum level of pollution can be adopted for building material manufacture (emission levels for brick sector). Codes can set standards for the provision of other programmes (e.g. labelling) and making part of such codes mandatory can encourage compliance

Certification and Labelling
Certification can demonstrate compliance with national building regulations and provide incentives to achieve better standards for resource efficiency. Audits can help improve building energy efficiency and sustainability in a targeted way. Labelling is often combined with building or product standards. Rating tools are at most effective when evaluating objective criteria with specific measureable outcomes. Performance targets and metrics minimise subjectivity.

They can be mandatory or voluntary. Mandatory reporting / audits as part of the permitting requirements can enhance compliance. These tools limit customer choices to more efficient technology, thus ensuring adoption.

Sustainable Public Procurement
Sustainable Public Procurement allows government institutions to meet their needs for goods, services and utilities such that generates benefits to the organisation, society and economy, while minimising damage to the environment. It involves establishing performance based public tendering and procurement processes. The sustainable public procurement strategies need to be based on credible and verifiable standards. Thus government spending can set an example for individuals and private sector purchasing.

Regulations and Bans
Restrictions and bans refer to the direct limitation of an undesirable behaviour or technology with negative environmental and health impacts. Regulations like stricter norms and standards for products can provide incentives for companies to rethink established product design thus enhancing environmental and social awareness. It imbibes the principles of polluter pays and precautionary principle.

Fiscal Incentives
Performance incentives like low-interest loans, direct grants or lower tax rates can be used to stimulate preferential industries and encourage innovation. They can fill an immediate financial gap, allowing a temporary shift in the market. Ecological budgets and tax reforms can shift the tax burden from employment, income and investment, to pollution, resource depletion and waste while remaining revenue neutral. This will stimulate investment into resource efficient technologies. Tax incentives can target a financial-liquidity barrier and offer incentives that create demand for efficient goods. Preferential or soft (below market rate) loans can stimulate investment in underdeveloped market areas; appear more flexible and able to adapt rapidly to changes in the market.

Informational Strategies
Public (consumer) engagement in green buildings is an important part of creating markets. The development of knowledge centres and networks for collaboration and information sharing, especially showcasing best practices and demonstration projects will go a long way in dissemination. National level awareness and training programmes improve technical capacity and skills. Mandatory public disclosure of environmental performance is an effective informational strategy.

While not all of these tools need to be applied for each technology option, there is a need to understand their impact on resource efficiency. For construction; codes, labelling and procurement are seen as an effective combination for accelerated adoption. Further, regulatory, fiscal and information strategies can enhance impacts. An appropriate combination of policy instruments can create an enabling environment encouraging industry to transition towards resource efficiency. Sustainable decisions on construction can catapult India onto a resource-efficient path.   q

Kriti Nagrath
knagrath@devalt.org

References
•  ASA & Associates (2012): Report of the Working Group on Construction Sector (Institutional Financing Working).
• DA-ODI (2013): Green Building: case study
• H.Muilerman, H.Blonk. (2001): Towards a sustainable use of natural resources
• IGEP (2013): India’s Future Needs for Resources, IGEP
• Planning Commission (2007): Working group on Minerals Exploration and Development, Eleventh five year plan, 2007–12. Government of India, New Delhi.
• SERI (2012): Material Flows database. www.materialflows.net
• UNEP (2010) ABC of SCP: Clarifying Concepts on Sustainable Consumption and Production. Nairobi:
• UNEP (2011). Paving the Way for Sustainable Consumption and Production: The Marrakech Process Progress Report, United Nations Environment Programme. Paris: UNEP.
• UNEP (2014). Sustainable Consumption and Production: A Handbook for Policy Maker Makers. 2nd Edition.

Back to Contents

  Share Subscribe Home

Contact Us

About Us