Financing the project : economic incentives promoting sustainable property development

This chapter is focussed on the various financial instruments and incentives that have been implemented in a range of countries to encourage sustainable developments in all property sectors. It is an area that has undergone substantial change globally since 2008. Sustainable property development has been impacted by the Global Financial Crisis, particularly with regards to the availability of private sector funding and the requirements of funders who now have a more cautious approach to risk. Sustainability, and sometimes a lack of it, is increasingly viewed as a risk in some markets; it is also seen as an area in which governments, through creation of markets and through the use of fiscal instruments can seek to speed up the pace at which the economics of sustainable development makes good business sense. However, it is not just governments that provide the incentive for sustainability- or the dis-incentive for non-sustainable behaviours.

Climate change, sustainability and science education

The world and its peoples are facing multiple, complex challenges and we cannot continue as we are (Moss, 2010). Earth‘s “natural capital” - nature‘s ability to provide essential ecosystem services to stabilize world climate systems, maintain water quality, support secure food production, supply energy needs, moderate environmental impacts, and ensure social harmony and equity – is seriously compromised (Gough, 2005; Hawkins, Lovins & Lovins, 1999). To further summarize, current rates of resource consumption by the global human population are unsustainable (Kitzes, Peller, Goldfinger & Wackernagel, 2007) for human and non-human species, and for future generations. Further, continuing growth in world population and global political commitment to growth economics compounds these demands. Despite growing recognition of the serious consequences for people and planet, little consideration is given, within most nations, to the social and environmental issues that economic growth brings. For example, Australia is recognised as one of the developed countries most vulnerable to the impacts of climate change. Yet, to date, responses (such as carbon pricing) have been small-scale, fragmented, and their worth disputed, even ridiculed. This is at a time referred to as ‘the critical decade’ (Hughes & McMichael, 2011) when the world’s peoples must make strong choices if we are to avert the worst impacts of climate change.

Understanding the business case for infrastructure sustainability

The relationship between corporate and sustainability performance continues to be controversial and unclear, not withstanding numerous theoretical and empirical studies. Despite this, views on corporate responsibilities “meet where management can show how voluntary social and environmental management contributes to the competitiveness and economic success of the company.” This approach is fundamental to the business case for infrastructure sustainability. It suggests that beyond-compliance activities undertaken by companies are commercially justified if they can be shown to contribute to profitability and shareholder value. Potential public good benefits range across a wide spectrum of economic (for example employment, local purchasing, reduced demand for electricity generation), social (indigenous employment and development, equity of access), and environmental (lower greenhouse gas emission, reduced use of non-renewable resources and potable water, less waste, enhanced biodiversity). Some of these benefits have impacts that lie in more than one of the economic, social, and environmental areas of public goods. Using a sustainability rating schemes and potential business benefits from sustainability initiatives, this paper presents a brief summary of an online survey of industry that identifies how rating scheme themes and business benefits relate. This allows for a case to be built demonstrating which sustainability themes offer particular business benefits.

Sustainability in infrastructure asset management

The expectation to integrate sustainability aspects (social, environmental, and economic success) into the design, delivery, and operation of infrastructure assets is growing rapidly and globally. There are now several tools and frameworks available to benchmark and measure sustainable performance of infrastructure projects and assets. This paper briefly describes the infrastructure sustainability (IS) rating tool developed by the Australian Green Infrastructure Council (AGIC) that was launched in February 2012. This tool evaluates sustainability initiatives and potential environmental, social, and economic impacts of infrastructure projects and assets. The rating tool provides the following benefits to industry: a common national language for sustainability; a vehicle for consistent application and evaluation of sustainability in tendering processes; assists in scoping whole-of-life sustainability risks, enabling smarter solutions that reduce risks and costs; fosters resource efficiency and waste reduction, reducing costs; fosters innovation and continuous improvement in sustainability outcomes; and builds an organization’s credentials and reputation in its approach to sustainability. The infrastructure types covered by this tool include transport, energy, water, and communication. The key themes of sustainability evaluation will be briefly presented in this paper, and they include management and governance; use of resources; emissions, pollution, and waste; ecology; people and place; and innovation.

Measuring sustainability performance within the Australian energy industry

Sustainability has become crucial for the energy industry as projects in this industry are extensively large and complex and have significant impacts on the environment, community and economy. It demands the energy industry to proactively incorporate sustainability ideas and commit to sustainable project development. This study aims to investigate how the Australian energy industry responds to sustainability requirements and in particular what indicators used to measure sustainability performance. To achieve this, content analysis of sustainability reports, vision statements and policy statements of Australian energy companies listed in the 2013 PLATTS Top 250 Global Energy Company Rankings and government reports relating to sustainability has been conducted. The findings show that the energy companies extensively discuss sustainability aspects within three dimensions, i.e. community, environment, and economy. Their primary goals in sustainability are supplying cleaner energy for future, and doing business in a way that improves outcomes for shareholders, employees, business partners and the communities. In particular, energy companies have valued the employees of the business as a one of the key area that needs to be considered. Furthermore, the energy industry has become increasingly aware of the importance of measuring sustainability performance to achieve sustainability goals. A number of sustainability indicators have been developed on the basis of the key themes beyond economic measures. It is envisaged that findings from this research will help stakeholders in the energy industry to adopt different indicators to evaluate and ultimately achieve sustainability performance.

Education for sustainability in construction management curricula

In response to the call for sustainability education in construction courses, higher education institutions have started to incorporate sustainability components into their construction courses to some extent. This research aims to investigate sustainability embedded in construction management (CM) courses using the Queensland University of Technology as a case study. A content analysis of its CM course structure, unit aims, learning objectives and lecture materials is conducted to examine the sustainability elements incorporated into the CM curriculum. The results show that the course incorporates sustainability components into the existing course structure mainly through horizontal integration, embedding sustainability into general units rather than as an add-on subject. Additionally, the sustainability topics embedded in the course cover a comparatively broad and balanced range of sustainability categories, i.e. background knowledge, policies and regulations, environmental issues, social issues and economic issues as well as technology and innovation, although social sustainability aspects need to be further strengthened. This research addresses the need for urgency in the development of an effective sustainability education framework for construction courses. It is expected that the findings from this study will facilitate the improvement of sustainability education in construction courses generally.

Finding the leverage point in the sustainability crisis: Global, national and regional Australian responses

From an economic perspective, the sustainability crisis is ultimately characterized by a worsening relationship between the resources required to support the global population and the ability of the earth to supply them. Despite the ever-increasing threat of a calamity, modern society appears unable to alter its course. The very systems which underpin global human endeavor seem to actively prevent meaningful change and the one irrepressible goal to which all societies seem to strive is the very thing that makes such endeavor ultimately life threatening: that of global growth. Using the Australian experience as an exemplar, this paper explores how the concept of growth infiltrates societal reactions to the crisis at various scales – global, national and regional. Analysis includes historic studies, a critique of current misconceptions around population demographics, comparative evaluation of various interventions in the Australian context and considerations around potential ways to address the crisis.

Enhancing information about sustainability features for sustainable housing delivery

Sustainability practices in government regulations and within the society influence the delivery of sustainable housing. The actual delivery rate of Australian sustain-able housing is not as high as other countries. There is an absence of engagement by stakeholders in adopting sustainable housing practices. This may be due, in the current Australian property market, to confusion as to what sustainability features should be considered, given the large range of environmental, economic and social sustainability options possible. One of the main problems appears to be that information demanders, especially real estate agents, valuers, insurance agents and mortgage lenders do not include sustainability perspectives in their advice or in their decision processes. Information distribution in the Australian property market is flawed, resulting in a lack of return-on-investment value of ‘green’ features implemented by some stakeholders. This paper reviewed the global sustainable development concept and Australian sustainable assessment methods. This review identified the possibility of a research project which aimed at identifying and integrating different perceptions and priority needs of the information demanders, for developing a model for the potential implementation of sustainability features distribution in the property industry. This research will reduce confusion on the sustainability-related information which can influence the decision making of stakeholders in the supply and demand of sustainable housing.

Biorefineries – creating economic opportunities from biofuels and bio-products

Biorefineries, producing fuels, green chemicals and bio-products, offer great potential for improving the profitability and sustainability of tropical agricultural industries. Biomass from tropical crops like sugarcane, sweet sorghum, palm and cassava offer great potential because of the high biomass growth potential under favourable climatic conditions. Biorefineries aim to convert waste residues through biochemical and enzymatic processes to low cost fermentable sugars which are a platform for value-adding. Through subsequent fermentation utilising microbial biotechnologies or chemical synthesis, the sugars can be converted to fuels including ethanol and butanol, oils, organic acids such as lactic and levulinic acid and polymer precursors. Other biorefinery products can include food and animal feeds, plastics, fibre products and resins. Pretreatment technologies are a key to unlocking this potential and new technologies are emerging. This paper will address the opportunities available for tropical biorefineries to contribute to the future profitability of tropical agricultural industries. The importance of pretreatment technologies will be discussed.

The economic value of new tropical biorefinery industries in Australia

Biorefineries, co-producing fuels, green chemicals and bio-products, offer great potential for enhancing agricultural value, and developing new industries in the bioeconomy. Biomass biorefineries aim to convert agricultural crops and wastes through biochemical and enzymatic processes to low cost fermentable sugars and other products which are platforms for value-adding. Through subsequent fermentation or chemical synthesis, the bio-based platforms can be converted to fuels including ethanol and butanol, oils, organic acids such as lactic and levulinic acid and polymer precursors. Other biorefinery products can include food and animal feeds, plastics, fibre products and resins. In 2014, QUT commissioned a study from Deloitte Access Economics and Correlli Consulting to assess the potential future economic value of tropical biorefineries to Queensland. This paper will report on the outcomes of this study and address the opportunities available for tropical biorefineries to contribute to the future profitability and sustainability of tropical agricultural industries in Queensland and more broadly across northern Australia.

Regenerative sustainability for the built environment – from vision to reality: An introductory chapter

Regenerative sustainability is emerging as an alternative discourse around the transition from a ‘mechanistic’ to an ‘ecological’ or living systems worldview. This view helps us to re-conceptualize relationships among humans’ technological, ecological, economic, social and political systems. Through exploration of ‘net positive’ or ‘regenerative’ development lenses and the traditional sustainability literature, the conceptualization and approaches to achieve sustainable development and ecological modernization are expanded to articulate and to explore the evolving sustainability discourse, ‘regenerative sustainability’. This Special Volume of Journal of Cleaner Production (SV) is focused upon various dimensions of regenerative sustainability (e.g. regenerative design, regenerative development, and positive development) applied to the urban built environment at scales, which range from individual buildings, neighborhoods, and urban developments to integrated regional sustainable development. The main focus is on how these approaches and developments are evolving, how they can help us to prevent or adapt to climate change and how these approaches are likely to evolve in the next two to three decades. These approaches are addressed in four themes: (1) reviewing the theoretical development of the discourse of regenerative sustainability, its emerging principles and practices, (2) explaining how it can be measured and monitored, (3) providing encouraging practical pathways and examples of its implementation in multiple cultural and climatic contexts, and (4) mapping obstacles and enablers that must be addressed to help to ensure that more rapid progress is made in implementing the transitions towards an urban built environment that supports genuinely sustainable societies.

Assessing the integrated sustainability of a public rental housing project from the perspective of complex eco-system

Public rental housing (PRH) projects are the mainstream of China's new affordable housing policies, and their integrated sustainability has a far-reaching effect on medium-low income families' well-being and social stability. However, there are few quantitative researches on the integrated sustainability of PRH projects. Our study tries to fill this gap through proposing an assessment model of the integrated sustainability for PRH projects. First, this paper defines what the sustainability of a PRH project is. Second, after constructing the sustainable system of a PRH project from the perspective of complex eco-system, the paper explores the internal operation mechanism and the coupling mechanism among the ecological, economic and social subsystems. Third, it identifies fourteen indices to represent the sustainability system of a PRH project, including six indices of ecological subsystem, five of economic subsystem and three of social subsystem. Fourth, it qualifies the weights of three subsystems and their internal representative indices. In addition, an assessment model is established through expert surveys and analytic network process (ANP). Finally, the paper carries out an empirical research on a PRH project in Nanjing city of China, followed by suggestions to enhance the integrated sustainability. The sustainability system and its evaluation model proposed in this paper are concise and easy to understand and can provide a theoretical foundation and a scientific basis for the evaluation and optimization of PRH projects.

Introduction: Sustainability reconsidered

Indeed this is still a common interpretation of sustainability and sustainable development. in actual fact the report highlighted three fundamental components to sustainable development: environmental protection, economic growth, and social equity. It stated that the environment should be conserved and our resource base enhanced, by gradually changing the ways in which we develop and use technologies. Moreover it was clear that developing nations must be allowed to meet their basic needs of employment, food, water, energy, ...

Sustainability After Rio

It is now 20 years since the United Nations Conference on Environment and Development, better known as the Earth Summit was held in Rio de Janeiro. An important achievement of the conference was an agreement on the Climate Change Convention which in turn led to the Kyoto Protocol. Another was agreement to 'not carry out any activities on the lands of indigenous peoples that would cause environmental degradation or that would be culturally inappropriate'. Recently we have seen an updated and revised conference in Rio where the same issues were again discussed. Since then ideas about sustainability have changed considerably and to some extent they have merged with ideas about corporate social responsibility and about governance, determined by the economic and political fortunes of the actors involved. It is now time therefore to re-examine the concept of sustainability in the aftermath of this conference and to consider what issues are now considered pertinent around the world. This book therefore takes different positions concerning different aspects of this vital topic.

Exploring the economic business case for incorporating biophilic urbanism

Linking sustainability, ecology and economics, this dissertation explored the decision making process for incorporating biophilic urbanism. Biophilic urbanism refers to the use of natural elements, or biophilic elements, as functional design features in urban landscapes to address climate change issues in rapidly growing economies. Informed by five global case studies, this dissertation introduced a novel term, ‘biophilic services’ to describe various characteristics that link the impact of biophilic elements to value. A model is also presented outlining underlying decision making logic for incorporating biophilic urbanism. These findings have immediate and practical implications for integrating biophilic urbanism into the fabric of the built environment.