SUSTAINABLE BUILDING & CONSTRUCTION INITIATIVE

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1 SUSTAINABLE BUILDING & CONSTRUCTION INITIATIVE Launching meeting 21 February 2006 at UNEP DTIE, Paris, France - MEETING REPORT -

2 Launching meeting, in Paris, on 21 st February 2006 The launching meeting of UNEP Sustainable Building and Construction Initiative (SBCI) was held in Paris, on 21 February It was attended by approximately 30 persons representing SBCI founding-members, companies interested, UNEP staff, SBCI keys partners and other stakeholders (participant list in annex 2). The purpose of the meeting was not only to present and formally initiate SBCI, but also to provide members and other stakeholders with an opportunity to discuss issues related to sustainability in the building and construction sector, and to give recommendations on the future work programme of the Initiative. Presentations from SBCI members and key partners After an opening speech from Monique Barbut, director of UNEP DTIE (attached in annex 3), members and partners were invited to introduce their organization and their interest for SBCI. Arcelor, is one of the world leading steel company (number one steel producer in Europe and Latin America), positioned in several markets: automotive, construction, household appliances and packaging as well as general industry. According to Mr. Bourrier, senior vice-president construction, Arcelor places its commitment to sustainable development at the heart of its strategy. Lots of investments are made to reduce CO 2 emissions. He specified that 80% of the steel used in the construction process is recycled steel. Sinotech Engineering Consultants is a Taiwanese consulting firm composed of more than 1,500 staff, out of 85 % of highly qualified and experienced engineers and architects. It is involved in several green building promotion programs in partnership with the government of Taiwan. As a consultancy, Sinotech is interested in getting information on the trends of sustainable buildings and in becoming a regional leader for the implementation of SBCI. Group Monplaisir, from the Caribbean, is a regional construction company involved in real estate development, tourism, environment, and infrastructure projects. Mr. Monplaisir, president, is aware that the Caribbean islands is one of the weakest ecosystem in the world and that it is the responsibility of his group to preserve it and to have the most positive environmental impact. By joining SBCI, Group Monplaisir aims at profiting from the latest worldwide expertise and inspiration. Gravel, Leclerc & Associates is a law firm that is interested in providing its legal expertise to SBCI, especially concerning the development of pilot projects. ADEME, the French agency for environment and energy efficiency, was represented by Mr. Pouffary, coordinator of international activity. He reminded that the building and construction sector is a key sector for ADEME which is already involved in several programs particularly in the Mediterranean region. Carrier, part of the UTC (United Technology Companies), is leader in air conditioning, heating and refrigeration systems. Mr. Huguet, marketing director, attended the meeting as an observer. He explained that Carrier would be interested by SBCI if it could clear and resume all existing local initiative and become an acknowledge reference in term of sustainability in the sector. 1/4

3 Launching meeting, in Paris, on 21 st February 2006 The Finnish Task Force on Sustainable Building and Construction was introduced by Ms. Taipale, coordinator. The Task Force is an intergovernmental group aiming at researching and establishing the policies, incentives, legislation etc. that would favor companies applying sustainable practices. It will be a key partner of SBCI, as a sister initiative. CIB, the International Council for Research and Innovation in Building and Construction, was represented by Mr. Bakens, secretary general. He provided SBCI members with several recommendations: - Involve in the process the large majority small companies: 90% of the building and construction sector is composed by micro firms of less than ten employees. - Hold regional conference to diffuse SBCI: priorities and conceptions of sustainability may be different in developed and developing countries. - Consider existing buildings: new buildings represent only 2% of building s stock. - Involve public and private clients and consider the procurement process: clients have new expectations that could change the industry: more and more consumers do not want to rent/buy a building but the function it provides, a space to live or to work on. - Involve Chinese companies: China consumes approximately half of the steel and cement produced worldwide and the forecast has it that in a few years a building out of two will be built in China. Broad air conditioning is a Chinese private company. Its CEO, Mr. Zhang, noticed that the Chinese government is aware about energy consumption issues and is currently working on labels, regulations and buildings classifications in term of energy efficiency. He is interested in promoting his technology through SBCI and in the development of baselines on consumption and CO 2 emissions to evaluate design solutions. International Union of Architects represents over a million architects throughout the world through national architectural associations. It has been involved in sustainable building and construction issues since 10 years. Mr. Hegger noticed that all new buildings will probably see the end of the fossil energy age. We are already able to design CO 2 efficient buildings; the architect is a key decision maker and the client first adviser as he is responsible for functionality, energy, material choices, etc. iisbe and FIDIC, represented respectively by Mr. Larsson, executive director, and Mr. Boswell, general manager, proposed to supply databases and expertise through SBCI think tank and working groups. iisbe also suggested the use of its Regional and World Sustainable Building (SB) Conferences to promote SBCI. UNEP SBCI was presented by Niclas Svenningson (note on set-up and function of SBCI is available on annex 4). Panel discussion The panel, chaired by Mr. Bakens from CIB, was composed by Mr. Radka (UNEP), Ms. Taipale (Finnish task force), Mr. Bancal (Gravel, Leclerc and Associates), Mr. Monplaisir (Group Monplaisir) and Mrs. Cho and Tu (Sinotech). It was asked to discuss four main questions. 2/4

4 Launching meeting, in Paris, on 21 st February What are SBCI members priorities and objectives? A first round of discussion permit to resume SBCI founding-members mains objectives: - Information: members are looking for inspiration and access to knowledge and experience on technologies that permit to build in a sustainable way worldwide. They want to be informed about best practices in different regions of the world. - Tools and strategies: they want SBCI to develop financial tools and studies that could facilitate the diffusion of sustainable practices in the sector. - Leadership: they want to develop expertises that enable them to become leaders and examples in their own regions. - Minimum and universal standards: although sustainability in the sector depends on regional particularities (such as climate), they are seeking for minimum and universal standards and labels that could clear all local initiatives in this field and help owners deciding on sustainable investments. - Lobby and access to international negotiations: they want SBCI to become a platform of discussion between private sector and governments where they could be involved in the development of national legislations or multilateral agreements. Industrials and financers are mainly interested by short term benefits whereas governments have long term perspectives and global commitments such as the Kyoto protocol s constraint on CO 2 emissions. SBCI need to combine those two perspectives (short and long term) and permit companies to anticipate legal constraints and participate to the definition of regulations that would be applied to them at the end of the day. There is no doubt that in the long term, their will be opportunities and competitive advantages for companies involved in this process from the beginning. UNEP s action is oriented to the achievement of United Nations Millennium Development Goals (MDG) and to the struggle against global environmental issues. Mr. Radka specified that UNEP s challenge is to link problems (such as climate change) with the building and construction sector s preoccupations and then to develop assessment tools, methods and financing solutions in a systemic approach. 2. What may be the scope of SBCI, buildings or buildings and infrastructures? Ms. Taipale insisted on the use of the term sustainable buildings rather than green buildings because lots of issues are linked to buildings, not only the environmental one. SBCI members agreed in considering the building centered impact by integrating infrastructures in SBCI. Indeed, in terms of sustainable development you can not only deal with buildings but also with urban planning, density, infrastructures, etc. Moreover, if we build a passive house, we need to consider embodied energy in the building. 3. How relevant are the proposed focuses: energy efficiency and climate change? All participants agreed with the two focuses proposed by UNEP for The first focus is life cycle impact of buildings and construction on climate change. The first think tank will work on the way to link buildings and construction s related emissions with the Kyoto Protocol. The second focus is energy efficiency in a life cycle perspective, including external costs. The second 3/4

5 Launching meeting, in Paris, on 21 st February 2006 think tank will work on financial tools to promote energy efficiency, energy saving and renewable energy, during the lifespan of buildings (including indirect benefits in property). Mr Goodall, from the European Construction Industry Federation, wanted to remind that only 5% to 15% of the energy use in buildings comes from the construction phase (material manufacturing, etc.) while 85% comes from the using phase of the built environment. Mr Larsson warned that focusing on energy efficiency and climate change issues, SBCI won t be linked with development issues of sustainability. 4. Which stakeholders should be involved? Mr Boswell noticed that the main barrier to sustainability in the building and construction sector is investment and risk management, rather than technical limits. SBCI challenge will be to involve key decision makers: owners, financers and governments because at the end of the day there are two ways of pushing the sector to sustainability: legal obligation and financial motivation (profitability). Members agreed in seeking to involve portfolio owners of buildings, public and private low cost builders and real estates developers. They express the wish that several municipalities and urban planners join SBCI because they would certainly by responsible for first experiments. SBCI secretariat was also asked to get on board representatives from infrastructure, maintenance, water and energy supply, and services companies. Summary and conclusion Members agreed in focusing 2006 SBCI work programme on the impact of buildings and construction on climate change and on energy efficiency in a life cycle perspective. They express several expectations in joining SBCI. This initiative should provide them with: - Inspiration and access to knowledge and worldwide experience in this fields. - Financial tools or studies that facilitate the diffusion of sustainable practices in the sector. - Expertises that enable them to become leaders and examples in their own regions. - Minimum and universal standards and labels that could clear all local initiatives. - A platform of discussion between private sector and governments. Members also agreed in: - Considering the building centered impact by integrating infrastructures in SBCI. - Seeking to involve the large majority small companies that compose the sector. - Considering not only new building but also existing ones. - Seeking to involve Chinese companies. For the next steps SBCI secretariat is asked: - To prepare for the board meeting a draft of the charter that would rule the initiative. - To associate several municipalities and urban planners in SBCI. - To involve in the initiative key decision makers (owners, financers), portfolio owners of buildings, public and private low cost builders, real estates developers and representatives from infrastructure, maintenance, water and energy supply, and services companies. 4/4

6 Launching meeting, in Paris, on 21 st February 2006 ANNEXES Annex 1: Annex 2: Annex 3: Annex 4: Annex 5: Agenda of the meeting List of participants Photos from the meeting Opening Note by Monique Barbut Note on the set-up and function of SBCI

7 DRAFT AGENDA - International launching on 21 February :30 10:00 Registration UNEP Division of Technology, Industry and Economics quai André Citroën / Paris / France 10:00 10:30 Welcome and introduction / Monique Barbut, director of UNEP-DTIE 10:30 11:30 Presentations by SBCI members 11:30 11:45 Governmental Task Force on Sustainable Building and Construction / Kaarin Taipale, coordinator of the Finnish SCP Task Force 11:45 12:00 Responsible Property Investment Working Group / Jean-Pierre Sicard, Caisse des Dépôts et Consignations (CDC) 12:00 12:40 The need and challenges for SBCI / Wim Bakens, Secretary General of CIB / Yue Zhang, CEO of Broad Air Conditioning 12:40 13:00 Set-up and function of SBCI / UNEP SBCI team 13:00 14:30 Lunch SUSTAINABLE BUILDING & CONSTRUCTION INITIATIVE 14:30 16:30 Panel discussion: setting a roadmap for SBCI / Moderated by Wim Bakens, Secretary General of CIB 16:30 17:00 Conclusion and official launching of UNEP s SBCI Please register your attendance by sending an to the SBCI Coordinator: Mr Mustapha Mokass at address: mmokass@unep.fr Tel: (+33)

8 Launching meeting / Annex2 List of participants ANNEX 2: - List of participants LAST NAME First name Company Position address SBCI members POUFFARY Stephane Ademe Coordinator international activity stephane.pouffary@ademe.fr BOURRIER Pierre Arcelor Senior Vice-President Construction pierre.bourrier@arcelor.com BANCAL Jean-Charles Gravel, Leclerc & Associes Attorney at law jcbancal@yahoo.fr GRAVEL Serge Gravel, Leclerc & Associes Founder sgravel@gravelpartners.com PICARD Michel Lafarge Corporate environment director michel.picard@lafarge.com FASSI-FIHRI Ali National Water Services of Morocco CEO of ONEP MONPLAISIR Ralph Monplaisir group President ralph.monplaisir@wanadoo.fr MARTINET Richard Richard Martinet Architecte Founder CHO Jui-Nian Sinotech Engineering Consultants President TU Taff T. Sinotech Engineering Consultants Vice president tafftu@sinotech.com.tw SODERBERG Staffan Skanska Manager sustainability staffan.soderberg@skanska.se Other companies ZHANG Yue Broad Air Conditioning CEO and Chairman JIANG Juliet Broad Air Conditioning COO jiangyan@broad.net SICARD Jean-Pierre Caisse des Dépôts et Consignations Director of sustainable development jean-pierre.sicard@caissedesdepôts.fr HUGUET Jean-Pierre Carrier Corporation Marketing Director JeanPierre.Huguet@carrier.utc.com DE BAYSER Xavier IDEAM - Integral DEvelopment Asset Management President CAVALCOLI Paolo Open Project Consulting and Engineering Architect Partners and stakeholders HERBECQ Jean-Martin Amanar project (Morocco) Project developer BAKENS Wim CIB Secretary General wim.bakens@cibworld.nl WURTZ Etienne INES - National Solar Energy Institut Director etienne.wurtz@univ-savoie.fr BOSWELL Peter FIDIC - International Federation of Consulting Engineers General Manager fidic@fidic.org GOODALL John W. FIEC info@fiec.org LARSSON Nils iisbe Executive Director larsson@iisbe.org KYVELOU Stella SD-MED President info@sd-med.org TAIPALE Kaarin The Task Force on Sustainable Building and Construction Coordinator HEGGER Manfred UIA - International Union of Architects uia@uia-architectes.org LEBOT Benoit UNDP - GEF Climate Change Technical Advisor benoit.lebot@undp.org LORENZ David University of Karlsruhe david.lorenz@wiwi.uni-karlsruhe.de LE FORESTIER Cédric Utopies Consultant leforestier@utopies.com UNEP BARBUT Monique UNEP - DTIE Director CHUNG In Hee UNEP - DTIE EC project on SBC in Asia inhee.chung@unep.fr DEMASSIEUX Fanny UNEP - DTIE Division Office HOBALLAH Arab UNEP - DTIE Head of Production & Consumption branch MEYSSONNIER Guillaume UNEP - DTIE SBCI assistant manager gmeyssonnier@unep.fr MOKASS Mustapha UNEP - DTIE SBCI manager mmokass@unep.fr RADKA Mark UNEP - DTIE Head of Energy branch SVENNINGSEN Niclas UNEP - DTIE SBCI senior manager nsvenningsen@unep.fr XIAOFEI Pei UNEP - DTIE Consultant

9 Launching meeting / Annex2 List of participants ANNEX 3: - Photos from the meeting Photo 1: All participants during the morning session. Photo 2: Opening speech by Monique Barbut. Photo 3: Speech of Mr. Zhang, CEO of Broad Air Conditioning..

10 Launching meeting / Annex3 Opening note by Monique Barbut ANNEX 4 - Opening note by Monique Barbut Director UNEP DTIE (30 minutes) Ladies and Gentlemen, It is with great pleasure that I welcome you to this official launch of the United Nations Environment Programme s Sustainable Building and Construction Initiative. I am especially glad to note that, in spite of the quite short notice for the invitation to this meeting, we have not only most of the SBCI members present, but also some of our main partners and key experts from the sector. We also have some long-distance guests that we are very pleased that they have found it worthwhile to travel all the way to Paris for this event. I promise you that you will find value in this meeting, and I hope you will all at the end of the day be as enthusiastic about SBCI as I am. The United Nations Environment Programme UNEP - is the leading UN organisation on environmental protection and sustainable development. Since the Earth Summit in Rio de Janeiro in 1992, the meaning of sustainable development has matured from a theoretical concept and vision for future development, to an urgent necessity, the absence of which has a direct impact on our reality. In a time where headlines are dominated by poverty, terrorism, trade disputes, man-made and natural environmental disasters, freedom of speech and religion, and global epidemics, it has become just all too apparent that it is impossible to address each problem in isolation from the others. Poverty reduction, health care, education, access to goods and services, quality of life, economic development, peace and cultural integrity, are all just different aspects of the larger challenge of sustainable development. An integrated approach to improving our world and society is clearly called for. At the World Summit for Sustainable Development in Johannesburg in 2002, the UN was tasked with seeking to achieve integration in the way we produce and consume goods and services in society. As a result, we developed what is now called the Marrakech Process - a framework for developing Sustainable Consumption and Production patterns in society. Clearly, the way we consume goods and services is not only a result of our actual needs, but more often also influenced by how goods and services are designed, produced and presented to the consumers. And lack of signals from the consumers to the producers about their needs and wishes, causes a systematic failure in optimizing the features of goods and services, often leading to waste of resources, high costs and environmental degradation. The case of energy use in buildings is an excellent example of this problem. We have today access to technology and solutions that could significantly cut energy use for heating, cooling and ventilation of buildings. There are today even buildings that can be entirely independent of external energy supply. These solutions often come at a higher initial cost than more conventional energy designs for houses. However, the operational costs are lower, since less 1/7

11 Launching meeting / Annex3 Opening note by Monique Barbut energy is consumed. If you consider the life span of buildings, the total costs for more energy efficient houses are also lower than for conventional houses. But this is where the systematic market failure comes into play: The designers and the builders of the house are typically competing for the construction contract and looking to minimize the construction costs, thereby selecting more conventional and less energy efficient solutions. The property developer is usually also not interested in the long-term energy efficiency as he/she is typically not going to use the building himself, but will sell or let the building to other tenants. Those tenants are the ones that will be shouldering the costs for the energy use. But the tenants have very limited options for influencing the property developer or landlord on the design of the energy system of the house. Thus, even if more energy efficient houses are both cheaper and more sustainable from a life cycle perspective, the market signals still favour older and less efficient solutions. Within UNEP, the Division on Technology, Industry and Economics here in Paris, is leading UNEP s work on sustainable consumption and production. It was only last year that we celebrated our 30 year anniversary, and we have come a long way since we started out in A basic realization for our work is that true progress can only come about when you work together with your stakeholders. As opposed to many other organizations in UN, we have therefore not only worked with governments and civil society, but also in close cooperation with the private sector. We have today established partnerships with a range of different sectors, including the financing sector, the telecom sector, the auto-manufacturing sector and the tourism sector, to mention just a few. Now, we feel it is about time for us to also move forward with the sustainable development agenda within the building and construction sector As you all know, the Building and Construction industry is a key sector for sustainable development, both in terms of the important benefits it contributes to society and the considerable negative impacts it may cause if appropriate considerations are not given to the entire life span of buildings. This sector typically contributes with 5 to 10% of employment at the national level and with 5 to 15% of the GDP. It literally builds the foundations for sustainable development, including housing, communications, water and sanitary infrastructures, and provides the context for social interactions as well as economic development at the micro-level. Numerous studies have also proven the relationship between the built environment and public health. At the same time, the building and construction sector has a significant negative impact. Energy use, use of natural resources, waste generation and consumption of hazardous materials are examples of prominent environmental impact from this sector. On a global average, buildings are responsible for up to 40 % of the total energy use in society, thereby also contributing to significant CO 2 emissions. 30 to 40% of landfilled waste comes from the building and construction sector, and more than 20 % of fresh water resources is consumed by this sector. Taking into account a growing population and an ageing stock of buildings, needing renovation or replacement, the future outlook suggests that both resource consumption and waste generation will increase in absolute numbers by 30% over the next 20 years. 2/7

12 Launching meeting / Annex3 Opening note by Monique Barbut Clearly, the building and construction sector has an important role in shaping the society of tomorrow. It would be impossible to have a society without this sector, but having a sector that functions as it does today is unthinkable. Within UNEP, we are well aware of the various initiatives, partnerships, organizations and programmes worldwide that in different ways are seeking to improve the sustainability of the sector. Many of them have achieved true progress and a few of them have also had an actual impact on how the sector operates. Nevertheless, the truth is that the sector is by and large still doing business as usual. The reason is that most of these other initiatives are either on a local or national basis, or have a limited focus on a specific industry within the wider building and construction sector. And they almost always stop short of trying to bring their efforts beyond mere recommendations and guidelines. So, in spite of these efforts, it is still perfectly possible in many cases even advantageous from an economic perspective to just ignore all these efforts, guidelines and recommendations. This situation is especially obvious when you look at some of the global problems facing the industry. As I mentioned, the building and construction sector is responsible for up to 40% of the total energy use in society, with accompanying greenhouse gas emissions. Climate change is perhaps the most serious environmental threat our society is facing and experts around the world now agree that far more drastic measures than have been taken to date to reduce greenhouse gas emissions are required, if we are to avoid global collapse of the climate system. It is unthinkable that the building and construction sector, contributing with such a large share of energy use, would remain outside efforts to combat climate change. The Kyoto Protocol, the current global mechanism for climate change abatement, will come to an end in 2012, after which we are looking forward to a new global agreement. An agreement that by necessity will have to be much more severe in the reduction requirement of greenhouse gas emissions from all sectors of society. Even so, there is today no global, sector-crosscutting effort to enable the building and construction sector to take an active role on greenhouse gas emission reductions. It is true is that many energy efficiency schemes and incentives exist for buildings at the national level, especially in countries that have a reduction commitment under the Kyoto Protocol. But the mechanisms that would enable buildings to be equipped with energy systems optimized for the life time of the buildings are still lacking. And there is no sector-wide effort to prepare the tools and methods necessary to include building stakeholders as active partners under the Kyoto Protocol or what will follow after the Kyoto Protocol. This is why we in UNEP have made the first priority of the Sustainable Building and Construction Initiative to be that of the climate change challenge to the building and construction sector, and to enable the sector stakeholders to take an active part in global convention work on climate change abatement. Certainly, there will also be other issues on the agenda of SBCI, but the climate change challenge will be the main focus for SBCI. 3/7

13 Launching meeting / Annex3 Opening note by Monique Barbut As some of you are well aware, UNEP is not new to this sector. We have for many years been addressing various sustainability issues related to the built environment in different ways. A few examples include our urban environmental management system programme, our sector dialogues, and projects on specific energy solutions for buildings. The most recent example is perhaps our Sustainable Building and Construction Conferences in Asia, the final output of which we are looking forward to presenting in the near future. However, we recognize that this is not enough. That there is now, more than ever, a need to take our work with this sector one step further: to jointly with the stakeholders themselves address the most important global challenges to sustainable development in the building and construction sector. It is in this context that we are now launching the Sustainable Building and Construction Initiative. We want this to be an initiative that has four specific features: 1. SBCI will be based on a broad partnership of stakeholders, so that we are able to effectively address the issues from a life cycle perspective, 2. SBCI will be a global partnership. We will take into consideration the situation in developing, as well as developed, countries. We are aware that the situation for the building and construction sector looks very different from country to country and for this very reason we do not wish to limit the Initiative to only a group of countries. Global problems require global solutions, 3. SBCI will support sustainable development in the building and construction sector generally, but will have the climate change challenge as its primary focus. As will be explained later today, SBCI will decide its own annual work programme, and we do not wish to limit its mandate. However, because climate change is the overriding challenge for the sector now, and most likely for many years to come, we wish to make this the key focus of SBCI, 4. SBCI will go beyond generating guidelines and recommendations. In its capacity as a UN-sponsored partnership with public and private stakeholders, as well as with close links to other sectors and global convention secretariats, we are in a unique position to actively influence key decision-makers to make the right decisions. Ultimately, we want to create and mainstream market conditions, policies and other conditions that favour the companies that chose to build more sustainably. You will learn more about the details of SBCI in a moment, and I would like to draw your attention to both the SBCI information note, and to the addendum to the note, named SBCI Structure 2006, which are both included in your meeting package. But I would like to highlight a few special features of the Initiative: SBCI will be a membership driven effort. However we will also partner with some other important organisations and Initiatives. I wish to mention two of them in particular: 1. Under the Marrakech Process on sustainable consumption and production, many governments have established intergovernmental Task Forces on specific subjects 4/7

14 Launching meeting / Annex3 Opening note by Monique Barbut related to sustainable consumption and production. Finland just recently launched a Task Force on sustainable building and construction, with a focus on energy efficiency in buildings. I am very happy to announce that we have with us here today the coordinator of that Task Force, Ms. Kaarin Taipale, who will also make a presentation about the Task Force today. SBCI and the Task Force will work together in many areas and as a first joint activity we are now carrying out global study on energy efficiency and climate change in the built environment. 2. Along with governments, the finance sector is perhaps the most influential sector outside the core group of building and construction stakeholders, that through their business practices affect what considerations are included when constructing buildings. UNEP has, for over 10 years, been working through our UNEP Finance Initiatives, with more than 160 of the world largest banks, insurance companies and investors. UNEP FI has this year started a working group on responsible property investment, that will look at many of the same issues as SBCI will, but from the perspective of financiers. We are therefore very lucky to also have M. Jean-Paul Sicard with us today (he will arrive about 11.30), and to confirm that the working group on responsible property investment will be another close ally to SBCI. Another feature of SBCI, not to be missed of course, is that UNEP is the hosting organisation. This has certain advantages, not only because of our leverage with governments and international conventions, but also because we are normally able to provide some extra strength to Initiative activities, from our in-house resources. For this first year of SBCI, we wish to give SBCI a flying start, which is why I have approved three extra activities to support SBCI: Firstly, we are preparing a global study on energy use, energy efficiency, climate change performance and related tools in the building and construction sector. This is a study that we are carrying out together with the Marrakech Task Force on Sustainable Building and Construction, and that will also constitute the first study the SBCI Think Tank will work on, Secondly, we are proposing to support a project on financing mechanisms for energy efficiency in buildings, and to make this the first task for the SBCI Working Groups. Clearly this would link closely with the work of UNEP Finance Initiative s Working Group on Responsible Property Investment, Thirdly, to also substantiate the SBCI focus outside climate change, we are preparing to engage in the development of a hands-on manual for sustainable reconstruction of buildings in Tsunami affected areas. This will still only be additional supporting activities to the main activities in SBCI, but we hope they will contribute to giving the Initiative a good start. Now, having said this, I also want to say a few words about today s meeting: This meeting is the official launch of SBCI. It means that from today SBCI is officially in business. The SBCI secretariat is already established. We have 10 confirmed members and expect several more to 5/7

15 Launching meeting / Annex3 Opening note by Monique Barbut join over the next few weeks. We will convene the first SBCI board meeting as soon as is convenient for all members, tentatively in March. The road to establishing this initiative has not been completely straight. Starting out as an idea within the SBC Conferences in Asia, it has then matured and developed, and even changed focus a few times, under the influence of potential partners, members and experts in the sector. While the core idea has remained the same as outlined above we have remained open to suggestions for how to improve this idea. The purpose of this launching meeting is not only to introduce SBCI, its members and partners, to you and to the world, but also to give you an opportunity to provide feed-back and input to the Initiative. This morning we will listen to presentations of SBCI members, and our partners, the Marrakech Task Force on Sustainable Building and Construction and the UNEP Financing Initiatives Working Group on Responsible Property Investment. We will also listen to a presentation about the formal set-up and structure of SBCI by the SBCI team in UNEP. We have then invited two speakers to provide us with their perspectives on the needs and challenges for SBCI. The first speaker is Mr. Wim Bakkens, Secretary General of the International Council for Research and Innovation in Building and Construction. We are very proud to have such an eminent speaker at this launch. The second speaker is Mr Zhang Yue, CEO of Broad Air Conditioning. Mr. Zhang is heading a company that in many ways is leading the idea and application of sustainable development in China s industry, and who also personally received the China-Europe Sustainability Award in Coming all the way from Shanghai, we are honoured by his presence. After lunch we have arranged for a buffet to be served in this room we will then have a panel discussion, chaired by Mr. Wim Bakkens, on the needs and challenges for SBCI. I hope you will all be active participants in this discussion and look forward to receive your honest recommendations on how to make SBCI a success. Now, I have the great pleasure of welcoming the following companies and organisations as members of SBCI: Lafarge Skanska Sinotech Arcelor Monplaisir Gravel Martinet Ademe National Office of Drinking Water (ONEP) (Morocco) City of Madrid 6/7

16 Launching meeting / Annex3 Opening note by Monique Barbut It is really with great pleasure that I welcome you to this Initiative. It is no secret that without members there would be no Initiative. We are truly grateful that companies and organisations such as yours are willing to work with us and to show the way for others to follow. Throughout history, great ideas have started out as small efforts that with the help of a few committed people, have often grown into revolutionizing movements. Let s hope this will also be the case for SBCI. In any case, I am convinced that you will all find it worthwhile and rewarding to engage in SBCI. I am very much looking forward to work together with all of you. Ladies and gentlemen, with this introduction, I would like to once again welcome you all to this meeting. I look forward to talking with you, and listening to all of you throughout the day. 7/7

17 Launching meeting / Annex4 Note on the set-up and function of SBCI ANNEX 5 - Note on the set-up and function of SBCI The Sustainable Building and Construction Initiative Set up and function /8

18 STRUCTURE SBCI Charter UNEP Sustainable Buildings and Construction Initiative Launching meeting / Annex4 Note on the set-up and function of SBCI The set-up, function, and operation of SBCI will be regulated in the SBCI Charter. The SBCI Charter will be proposed by UNEP and revised and adopted by the first Board meeting of SBCI, tentatively scheduled for March All members who by that time have confirmed in writing to UNEP their participation in SBCI will be recognized as members of the first Board. Thus, the adoption of the SBCI Charter will be made by the entire SBCI membership. The charter will be modelled on similar charters for other UNEP initiatives, and will lay down provisions for the composition of the Board, duration of the terms of the board members, responsibilities of the Board, relation between the Board and the entire SBCI membership, function of the SBCI secretariat, the procedures for SBCI membership applications, reporting requirements, budget etc. All practical aspects of the Initiative that requires a formal text will thus be regulated by the SBCI Charter. As the initiating partner, UNEP reserves the right to include certain provisions in the Charter: - UNEP is a permanent member of the SBCI board and will have an equal voting power as other full members (i.e. if each member has one vote, then UNEP also has one vote). - The SBCI project budget is managed by UNEP according to the UN financial regulations, and reported to the SBCI board accordingly. - The SBCI secretariat is hosted by UNEP - Membership fee levels will be maintained at the current levels (see below) for a period of at least three years. SBCI Members SBCI is a partnership of members that are supporting the SBCI activities through their annual membership fee and by contributing expertise and staff time to the SBCI Board, Working Groups, and Think Tank. The membership fee is pre-defined by UNEP as US$ for international corporations, US$ for national companies and US$ for other members, e.g. associations, cities, and universities. SBCI may decide to accept non-paying (and thereby non-voting) members into the Initiative if they can contribute significantly to the Initiative in other ways, e.g. through active contribution to the work of Working groups and the Think Tank. Decision about such membership is taken by the SBCI board on the recommendation of any SBCI member or UNEP. Confirmed members as of 18 February are: Arcelor Lafarge Sinotech Skanska 2/8

19 Launching meeting / Annex4 Note on the set-up and function of SBCI Monplaisir Gravel Martinet Ademe National Office of Drinking Water (ONEP) (Morroco) City of Madrid The SBCI secretariat is in discussion about potential membership with another 20+ companies. The Role of UNEP UNEP is hosting the SBCI secretariat and is also providing support functions to the Initiative. UNEP is the only permanent member of the SBCI Board. SBCI Board Function: To approve the SBCI annual work programme and budget. To provide guidance and direction for the SBCI secretariat. To propose recommendations to the SBCI membership on issues that require the approval of all members. Mode of operation: Members: Status: Scheduled Board meetings (2 times /year) Quarterly phone conferences Board members are elected by the SBCI membership. At the first Board meeting, which is tentatively scheduled for March 2006, all founding members will be recognized as Board members. At that meeting, a charter for SBCI will be proposed and adopted, regulating i.a. procedures for election of board members, number of members and duration of their terms on the Board. SBCI Secretariat Function: To manage the daily operation of SBCI activities according to the work programme approved by the SBCI board, including setting up and operating the SBCI Think Tank, SBCI working groups, partnerships, consultations, and projects. To manage daily communication with SBCI members and other stakeholders and potential members, including the SBCI web site and news letter. To report to the SBCI Board on progress and challenges of implementing SBCI activities. To manage and maintain records of the SBCI budget, and to regularly report the budget status to the SBCI board. 3/8

20 Launching meeting / Annex4 Note on the set-up and function of SBCI Mode of operation: Funding: Status: Hosted by UNEP Paris Staffed by a full time SBCI coordinator and seconded staff (the goal is to have at least one full time seconded staff at all times) Backstopping provided by UNEP s SBCI team Fully integrated with UNEP s regional structure Fully supported by UNEP s administrative services The SBCI Coordinator s salary is paid from the SBCI budget Operational costs, including travel, meetings, reporting, fees for consultants etc, are paid from the SBCI budget Costs for office rent, communications, administrative support, and backstopping by other UNEP staff is covered by UNEP directly. The SBCI Secretariat is already operational with the following composition: - Project Coordinator: Mr. Mustapha Mokass - Seconded staff: Mr. Guillaume Meysionnier (until 31 March 2006) - Backstopping team: Arab Hoballah, Niclas Svenningsen, Inhee Chung and Fanny Demassieux. SBCI Think Tank As is explained in the SBCI Information Brochure, SBCI will be implemented according to a work programme adopted by the SBCI Board and by means of the SBCI Think Tank, the SBCI Working Groups, and the SBCI projects. The SBCI secretariat will initiate and coordinate the work of these groups. The SBCI Think Tank will be tasked to review and provide recommendation on the specific focus areas for SBCI, as defined in the SBCI work programme. The composition of the Think Tank will vary depending on the current focus, and will be composed of the leading experts and organizations in each focus area, if possible drawn from SBCI members and partners. Results from the Think Tank will be published in SBCI reports, twice annually. To support a rapid start of Think Tank activities, UNEP has jointly with the Marrakech Task Force on Sustainable Building and Construction commissioned a study on energy efficiency, and baseline conditions for climate change in buildings worldwide. While this study will be carried out as a consultancy, the first Think Tank will provide the peer review to the findings. A joint SBCI-Task Force event is planned to be organized around this study at the Commission for Sustainable Development in New York in May 2006 SBCI Working Groups Based on the recommendations of the Think Tank, SBCI Working groups will engage in specific activities to respond to the identified needs. This can range from developing training 4/8

21 Launching meeting / Annex4 Note on the set-up and function of SBCI tools, guidelines, monitoring standards and policy recommendations, to direct consultations with Global bodies and governments, pilot projects, and partnerships to develop of economic instruments or other tools. The working groups will be composed by a combination of experts from SBCI members and partners, UNEP and consultants. The output from the working groups will be presented at the SBCI workshops In order to support the first-year activities of the SBCI Working Groups, UNEP is proposing to engage the first Working group in a UNEP funded project on Public finance mechanisms to increase energy efficiency in buildings. The working group would develop activities to link the work of SBCI with UNEP s expertise on sustainable energy finance, as well as with the work of the UNEP FI Working group on responsible property investment (please refer to Partnerships below) SBCI Pilot projects A key feature of SBCI will be to bring tools and recommendations into adoption by the stakeholders. In order to achieve this it will in many cases be necessary to demonstrate and evaluate the tools, strategies etc, generated by the SBCI working groups, by testing them in pilot projects. Such pilot projects can range from limited tests of economic incentives, to validation of emission baselines, to application of SBCI tools to new communities or buildings. Potential embryos for such pilot projects have been identified in community projects in China, India, Sri Lanka and Saudi Arabia, as well as new building regulations in China and Europe, and in individual construction projects throughout the world. SBCI Partnerships and Networks SBCI will enter into partnership with other major initiatives and organizations that can substantially contribute to the objectives of SBCI. Organisations that the SBCI secretariat has established, or is in the process of establishing, partnerships with include: The Marrakech task Force on Sustainable Building and Construction The UNEP FI Working Group on Responsible Property Investment The International Union of Architects Under this category of SBCI activities also falls individual projects that SBCI engage in, but which are not a direct result of the output from the SBCI working groups within the SBCI focus areas. Such projects will be approved on a case-by-case basis by the SBCI board, but should always contribute to the overall objective of SBCI. An example of potential SBCI activities in this group is an on-going effort to develop a handson manual on sustainable reconstruction in tsunami affected areas. 5/8

22 Launching meeting / Annex4 Note on the set-up and function of SBCI WORK PLAN YEAR 1 The following activities are planned to be carried out in the first year of SBCI (February 2006 February 2007): Start Date Component Activity Budget Code February SBCI Launch, Paris Introduction of SBCI N/A March First SBCI Board Meeting, Paris Adoption of SBCI Charter and work programme US$ 2000 (SBCI) March Launch of SBCI Communication * SBCI Web Site * SBCI Network Briefings US$ 1000 (SBCI) April Think Tank 1 Study on energy efficiency and climate change US$ (UNEP) April Working Group 1 Public finance mechanisms for energy efficiency in buildings US$ (UNEP) March/April SBCI projects Tsunami area reconstruction manual US$ (UNEP) TBC May CSD New York Review and discussion of Think Tank study US$ (SBCI) September SBCI workshops Shanghai (TBC) Think tank workshop Working group workshop US$ (SBCI) September Think Tank 2 Focus area 2 (to be defined) US$ (SBCI) September Working Group 2 Activities responding to focus area 1 recommendations (Think Tank 1) US$ (SBCI) October Start of consultations Presentation of initial findings to key stakeholders US$ (SBCI) Nov/Dec Pilot projects Initiate review of potential pilot TBD February 2007 SBCI annual conference, workshops and Board meeting Location TBD projects General SBCI membership meeting. Think Tank 2 workshop Working group 2 workshop SBCI Board meeting Budget 2007 RED SBCI Infrastructure YELLOW SBCI activities BLUE SBCI meetings 6/8

23 Launching meeting / Annex4 Note on the set-up and function of SBCI OUTPUT On an annual basis the following output will be generated from SBCI: SBCI strategic reports are published by the Think Tank and describes the work and findings of the Think Tank within each Focus area it addresses. Approximately two reports will be issued per year. SBCI Tools & Strategies Briefings are presenting the results of the work done by each working group. These can be in the form of guidelines, project proposals, electronic resources, training materials etc. Approximately two reports will be issued per year. SBCI workshops will be organised on a regular basis to present, discuss, and if suitable provide training on the current focus areas of the Initiative. The SBCI workshops will be organized onetwo times per year. SBCI projects will be conducted as part of the regular work programme and SBCI members will be invited to support, take active part in, and take part of the results through direct invitations and briefings. These will be carried out on a continuous basis SBCI network briefings, this electronic newsletter will provide members with information about news and activities concerning SBCI. The SBCI Network Briefings will be prepared by the SBCI Secretariat. The SBCI network briefings will be published quarterly in electronic format. SBCI Net is the web site of SBCI, presenting SBCI to the world, and providing members with links, tools and resources on sustainable building and construction. SBCI consultations will be organised with key stakeholders, international organizations, governments, industry sector initiatives etc. to present and promote the SBCI agenda and output. SBCI consultations will be organized as required, normally 2-3 times per year. SBCI annual meetings are organised with the entire SBCI membership. BUDGET SBCI will operate on a core budget based on membership fees. SBCI will seek to attract additional funding through project activities. The estimated annual income to SBCI from membership fees is US$ This is based on an assumption of a membership of 4 international members, 5 national members and 6 other paying members. 7/8

24 Launching meeting / Annex4 Note on the set-up and function of SBCI The annual costs for SBCI are approximately projected as follows: Expenses Costs (US$) Costs (US$) Nominal Actual 2006 SBCI secretariat: Staff costs and overhead SBCI secretariat: Communication, reporting including printing, outreach and travel Think Tank and Working Groups: Expert fees, travel, R&D costs (SBCI) (UNEP) Seminars, workshops and Board meetings SBCI Consultations SBCI projects : tsunami reconstruction manual. (UNEP:TBC) TOTAL: (SBCI) (UNEP) 8/8

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