Building greener future

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Green buildings have become more popular and important in the past several decades to slow down the effects of climate change. The green building movement is growing significantly for its advantages, such as less water and energy consumption, conserving natural resources, optimizing operations, and generating less wastage. The green buildings also help occupants provide comfort and health by using high sanitation and environmental quality materials. 

As per the World Green Building Council report, green buildings ensure approximately 25 to 35% energy savings and 39% water savings compared to conventional buildings. They use biodegradable materials, water efficiency techniques, solar power for heating, ventilation, air conditioning, green insulation, and cool roofs. 

Shifting consumer focus towards a healthier environment provides growth opportunities for green buildings. The builders and construction teams actively seek green building certification as a marketing tool to reach prospective tenants and investors. There are numerous certifications to evaluate a green building, including Leadership in Energy and Environmental Design (LEED), Energy Star, The Building Research Establishment Environmental Assessment Method (BREEAM), Green Globes, National Green Building Standard (NGBS), GreenGuard, Well Building Standard, NABERS, Green Star, and Comprehensive Assessment System for Built Environment Efficiency (CASBEE).

The future of green building technology looks promising with plenty of opportunities, including sustainable materials, air-cleaning materials, micro-grids, smart glass, electricity-generating glass, and net zero buildings. Several start-ups in the construction industry are implementing green building materials and technologies in their construction methods. These companies are actively raising investments in various funding rounds for product and technology innovations. For instance,

• Terra CO2 Technology, a Colorado-based start-up, has announced that it raised US$ 46 million in a Series A funding round in July 2022. The company is majorly involved in replacing Portland cement with cementitious materials produced from the easily available silicate-type feedstock. The company claims that by replacing every ton of Portland cement with these cementitious products, CO2 and nitrogen oxide emissions will be reduced by 70% and 90%, respectively.
• Intelligent City, a Canada-based start-up, has raised around US$ 17 million in a Series A round through combined government and venture capital support. This start-up provides the estimates for cost & carbon emissions through software and the manufacturing technology to build the components. Through Passivhaus designs, green building strategies, and renewable materials, the company aims to achieve a reduction of 90% in carbon emissions.
• 011h, a Barcelona-based start-up, is shifting towards sustainable wooden buildings to reduce its carbon footprint. The start-up has recently completed a project with Renta Corporacion, where construction time was reduced by 35% and embodied carbon of the building was reduced by 90%. 011h aims to construct net-zero buildings faster and cheaper by utilizing timber-like sustainable materials and digitalized building process. The company recently raised US$ 25 million in funding in a Series A round. 
• Nexii Building Solutions, a Canada-based green construction technology company, raised around US$ 155 million in the seventh round in June 2022. Nexii’s patented building models involve the bulk production of prefabricated panels comprised of Nexiite, an alternative to in-house concrete. Using Nexiite, the company claims to reduce carbon emissions by 20 to 36 % compared to Portland cement. 
• Prometheus Materials, a Colorado-based start-up, has raised US$ 8 million in a Series A funding round in June 2022. The company uses microorganisms to prepare green cement, a zero-carbon alternative to Portland cement. This bio-cement will undergo a formal certification process with the American Society for Testing and Materials (ASME). Moreover, Prometheus has recently completed a pilot project with the bio-cement. 

Despite the benefits of green building technologies, still, the industry is struggling for a consistent future. The major challenges of green buildings are high costs and lack of awareness among the majority population. In addition, the high initial design and construction costs hinder the industry's growth. However, governments of various countries taking initiatives to achieve Net Zero goals in the construction sector are propelling the market revenue growth of green buildings. In addition, real estate developers are also focusing on energy and water saving due to increased environmental, social, and governance standards.

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