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ECO3149

Research Proposal

July 6，2023

1. Abstract

Buildings are, as most people think, responsible for everyday environmental problems such as greenhouse gas emissions, resource depletion, waste generation and land use change. The data of International Energy Agency show that buildings account for about 27% of global energy consumption and 17% of carbon dioxide emissions（Nejat et al., 2015). These proportions are increasing yearly. Since the environmental problems caused by carbon emissions have caused extreme bad weather, destroyed materials, and impacted human health and caused huge economic losses to the government and residents, our team believes that the construction of zero-energy buildings in Canada can effectively address the problems caused by carbon emissions of buildings.

The purpose of this research is to provide data and research result support for government decision-makers to make the right decision about building zero-energy buildings in Canada through the cost-benefit analysis. The proposal consists of five section. Section 1 will introduce the purpose, scope and background of this project in Canada. Section 2 will provide the ordinary residents’ perspective to introduce the necessity of carrying out this project in Canada and its function in reducing building carbon emissions. Section 3 will discuss the detailed methodologies we will use in the project. In addition to make the net benefits and costs, we will make the sensitive analysis of project implementation from various aspects in this part. Section 4 will provide a assessment about this project from the aspects of human health, ecological benefit, reduced material damages and household and government investment in maintaining housing or public buildings and reducing damages to construction materials. Section 5 will make a conclusion based on the above analysis. Based on our research, we hope the government policymakers to make the right decision in promoting the construction and retrofitting of zero-energy buildings in Canada.

2. Statement of Need 

The problem that we are addressing is building carbon emissions in Canada. Building carbon emission refers to the greenhouse gases released by buildings during their construction, use and demolition. It is well-known that the growing population and the continued expansion of floor space will inevitably increase energy consumption and greenhouse gas emissions, including carbon dioxide and environmental pollution, in the real estate construction section. Statista (2023) shows that 17% of emissions come from residential, commercial and public buildings in Canada and Canada’s construction industry released more than 95 million tons of carbon dioxide (MtCO₂) into the atmosphere in 2021.

    Building carbon emissions have influenced human’s environment and society deeply. In the aspect of climate change, using traditional building materials during building construction, production and operation has released large amounts of CO₂. These gasses have caused global warming and an increase in extreme weather events, such as floods, droughts, and hurricanes, causing great damage to communities and ecosystems. In the aspect of energy use and energy waste, the manufacturing and construction process of buildings involves a lot of energy and raw material consumption which will also release CO₂. In addition, the waste of energy in the construction and operation of traditional buildings such as the links of heating, cooling and lighting will also lead to carbon emissions due to the lack of efficient building design and insulation. Last but not least, from the perspective of human health and society development, building carbon emissions have directly threatened human health and ecological security, restricting the economy's and society's sustainable development. Carbon emissions from buildings will interact with emissions of other pollutants to form PM2.5. When these pollutants enter human’s body, they can cause respiratory diseases, cardiovascular problems and immune system disorders.

The goal of this proposal is to build zero-energy buildings in Canada. We proposed the project in terms of reducing carbon emissions, dealing with extreme weather and creating a better living environment. Canada is a country that faces various severe weather, such as extremely cold weather, rainstorm weather, flood disaster and forest fires. Compared with traditional building, zero-energy buildings can protect people from severe weather through advanced technology and building materials. Meanwhile, in addition to produce much smaller environmental impact than a traditional building, the zero-energy building will create a more comfortable living environment than traditional building for human due to they use low-carbon materials during the construction phase and adopt renewable energy sources and green automated systems throughout the building’s life. In addition, the zero-energy building’s advanced ventilation system and air-tight insulation create fresh indoor air, insulating residents from outdoor pollutants and benefiting people’s health. What’s more, zero-energy buildings can save money on energy use.

    This proposal recommends that the Government of Canada coordinate with the Ministry of Housing, design institutes, real estate construction companies, and residential communities. Building zero-carbon communities through zero-energy buildings requires all parties to work together. Zero-energy buildings need to be green from the design stage, and building zero-energy buildings is indispensable if we are to limit the effects of climate change. In addition to the environment, zero-energy buildings have additional benefits, such as being healthier and less expensive to run than conventional buildings.

3. Project Activity, Methodology and Outcomes

3.1 Project Activity

Buildings generate carbon emissions throughout their life cycle, such as during the building operation phase, the manufacturing, transportation, construction of building materials, and the end-of-life phase of all buildings. In planning, designing, constructing and using buildings, reducing energy consumption and realizing zero carbon emissions to the maximum extent have a pivotal role in alleviating global warming and improving the living environment of cities. Canada has a world-leading green building industry well-positioned to achieve building reduction and, eventually, zero-energy buildings.

    Implementing zero-energy buildings usually requires the joint efforts of multiple sectors and stakeholders, including government departments, the architecture and design industry, the energy sector, environmental protection agencies and others.

3.2 Methodology

Cost: the cost of zero-energy buildings is higher than traditional building due to they require advanced technologies and green materials. Shannon et al. (2015) pointed out that property developers currently pay a premium of about 10% for higher construction costs. In order to promote this project and encourage the construction industry to adopt greener and more energy-efficient practices, the government of Canada may need to provide financial incentives, such as tax breaks and subsidies.

(source: Shannon et al 2015)

In addition, zero-energy buildings also have operating costs. Although zero-energy buildings are generally more energy efficient during operation, they can be slightly more expensive to operate and maintain than conventional buildings—for example, the maintenance costs of renewable energy systems, maintenance costs of efficient equipment, etc.

Benefits and outcomes:

1. Zero-energy buildings have a higher business value than traditional building. Report shows that rent for green-certified buildings increased by 13.3% to 36.5%. On the one hand, the high property values benefiting developers. Since the design and operation of zero-energy buildings comply with government’s principles of sustainable development, it will help the developer to enhance a company's brand image and gain a competitive advantage in the market to attract more customers and tenants. On the other hand, zero-energy buildings can significantly reduce energy consumption and operational costs through adopting energy-efficient technologies and renewable energy systems.

2.Since zero-energy buildings will help people adapt the climate and meet government’s policies for climate change, this project can help owners save future costs in building renovation.

3. Zero-energy buildings are benefit for environment and human health due to it can reduce the buildings’ negative impact on the environment and improve indoor air quality.

4. Evaluation

Evaluating the impact of zero-energy building projects in Canada on emissions reductions in Canada includes a combination of quantitative and qualitative analysis. Quantitative collection and analysis of all data related to the project, including construction costs, operating costs, energy efficiency measures, carbon emission reductions, government incentives. The qualitative analysis includes an analysis of the Canadian government’s policy and regulatory on zero-energy buildings and carbon reduction, the Canadian market demand and potential opportunities for zero-energy buildings, Canada’s technological and innovative capabilities in the related field, and the economic feasibility of the projects through cost-benefit analysis. It also includes the impact on the environment and the assessment of social acceptance and recognition of this project.

4.1 Life Cycle Cost Analysis (LCCA). The LCCA assesses the economic viability of the project by calculating the costs of construction, operation and maintenance, as well as the expected energy and resource cost. LCCA can help us compare the cost-benefit of different building options and determine the best one.

4.2 Net Present Value (NPV) calculation: calculated by discounting the costs and benefits associated with a zero-energy building project from the current value and subtracting the initial investment. The project is economically viable if the net present is positive.

4.3 Benefit-cost ratio (BCR): the benefit-cost ratio is obtained by dividing the total project revenue by the total project cost. The project is economically viable if the benefit-cost ratio is greater than 1.

4.4 Cost Evaluation: determine all associated project costs and life cycle costs, compare costs with expected benefits, and assess the viability and financial sustainability of the project.

4.5 Energy Simulation and Analysis: the building energy simulation software simulates the energy use of buildings under different design and operating conditions. Simulation and analysis are used to assess the effects of other energy-saving measures and technologies, predict energy-saving potential, and identify the best options to achieve zero carbon goals.

4.6 Environmental Impact Assessment (EIA): Assess the potential environmental impact of the project, including energy consumption, greenhouse gas emissions, water use, land use, etc. Through quantitative analysis and evaluation, the positive and negative impacts of the project on the environment can be determined, and corresponding measures can be proposed to reduce negative effects and improve environmental sustainability.

4.7 Social Impact Assessment (SIA): Consider the impact of the project on society, including employment opportunities, residents’ well-being, residents’ health, community participation, etc. Through communication and research with relevant stakeholders, the positive and negative impact of the project on society can be assessed, and measures can be developed to maximize social benefits.

4.8 Brand image and market research: the potential demand and competition for zero-energy building projects in the market can be assessed through market research and consumer surveys. Understanding the trends and needs of the target market helps to determine the project's market competitiveness and commercial viability.

    Combing the quantitative and qualitative analysis results of the above methods, the overall feasibility and success of zero-energy building projects can be evaluated. These evaluation methods can provide decision-makers and stakeholders with the information they need to support the decision-making and implementation process of the project.

5. Dissemination

    To effectively disseminate the results and recommendations of the cost-benefit analysis for implementing zero-carbon buildings in Canada, this proposes to develop a clear communication strategy based on understanding the target audience.

5.1 Know the target audience: the target audience for this project is Canadian policymakers, including government officials and related policymakers, as well as CEOs of public service agencies or large corporations. Understanding their roles, needs and interests in reducing emissions can help us tailor communication strategies and messages to maximize their decision-making.

5.2 Develop a clear communication strategy: Identify key information about the zero-energy building project based on the characteristics and needs of the target audience, including the project’s advantages, costs and environmental benefits, feasibility and potential benefits. This information should be linked to the concerns of the target audience and the needs of stakeholders. For example, policymakers may be concerned with economic efficiency, environmental sustainability and energy security, and therefore emphasize these benefits in communication to gain their support.

5.3 Build partnerships: Build partnerships with other relevant stakeholders to increase influence and credibility. Working with environmental organizations, academic institutions, and industry associations to advocate for policy reform and support zero-energy building projects to attract the attention of policymakers.

5.4 Quantitative and qualitative data support. In the communication program, the results of quantitative and qualitative data studies on the project's economic benefits, environmental impacts, and energy savings will be used to increase the credibility and impact of the proposal.

5.5 Use media and social media: we can use media relations to promote zero-energy building projects and related policies in news reports, feature articles or interviews. This will raise awareness of the role of zero-energy building projects in environmental protection and energy conservation and promote public support for zero-carbon buildings in Canada.

    These communication strategies can effectively communicate the cost-benefit analysis results of a zero-energy building project to stakeholders and promote proper support for this project in Canada.

Reference：

1. Bouton et al, 2015,Building the cities of the future with green districts, McKinsey Sustainability,

https://www.mckinsey.com/capabilities/sustainability/our-insights/building-the-cities-of-the-future-with-green-districts#/

2. Nejat, P., Jomehzadeh, F., Taheri, M. M., Gohari, M., & Majid, M. Z. A. (2015). A global review of energy consumption, CO2 emissions and policy in the residential sector (with an overview of the top ten CO2 emitting countries). Renewable and sustainable energy reviews, 43, 843-862.

3. Tiseo I, 2023,Building sector CO₂ emissions in Canada 1970-2021, Statista

https://www.statista.com/statistics/1290641/building-sector-emissions-in-canada/