Retrofitting the least capital-intensive way to reduce carbon emissions of existing buildings

Retrofitting is the least capital-intensive way to make existing buildings smarter and more efficient in order to reduce carbon emissions, wrote Cushman & Wakefield analysts in their latest report on How To Retrofit.

About 80% of the buildings today will exist in 2050. The built environment is responsible for about 42% of annual global CO2 emissions, according to the World Economic Forum.

We estimate that by 2050 there will be 6.6 billion square meters of commercial real estate across 143 countries, while the cost of decarbonizing the global real estate market is estimated at around $18 trillion.

At COP26, Vietnam made ambitious commitments to reduce carbon emissions to zero by 2050. Most organizations are making efforts to go carbon neutral, use clean energy sources, and offset the remaining emissions.

We have created a three-step program for retrofitting that can guide investors through how to retrofit property and create efficient portfolios.

The first step is understanding what you’re emitting – and where your carbon and energy weak spots are. In this case, that’s your Energy Use Intensity or EUI. Your building’s EUI can then be benchmarked against the energy performance of similar buildings to identify how well your building is performing in comparison. Importantly, it can then also be used to compare against Net Zero EUI targets to understand how much energy you need to reduce to become Net Zero.

EUI is a measure of total energy used within a building in a year and is expressed in kilowatt-hour (kWh) per gross floor area (sqm). While there are many global certification programs that facilitate benchmarking and minimum performance standards of buildings (Energy Star, BREEAM, Green Mark, LEED, Greenstar, NABERS, etc.), EUI is unique in that it provides a somewhat universal indicator of energy efficiency. After understanding your EUI, a good next step is understanding how energy is being consumed - this can be understood by undertaking an energy audit assessment.

A list of common energy guzzlers that are worth considering retrofitting for a cleaner, greener upgrade includes heating & cooling, lighting systems, mechanical ventilation for car parks, common areas of M&E systems, lifts & escalators, and building management

Take mechanical ventilation systems in basement carparks, fresh air intake, and escalators, for example. By retrofitting variable speed drives controlled by sensors that respond to real-time requirements, you can make these common installations perform more efficiently. With these additions, your system can respond to changes in the environment in real time, rather than having to be manually controlled. Easy. And efficient.

Please remember that energy optimization and retrofits for lifts and escalators may need to be implemented by the original manufacturer or OEM. They may also have some additional advice on efficient technologies relevant to the device.

On the other hand, buildings do not necessarily require a complete project overhaul in cases where the building owner clearly understands the original design and specifications, then only needs to understand changes in space usage needs and list equipment that needs to be replaced.

Retrofitting your lighting can dramatically improve your energy output – and is often a quick win for a brighter tomorrow. Replacing existing lighting with low-energy lighting alternatives, such as LED lights, can significantly reduce the amount of energy required to light up a space. Overlighting is a common source of excessive energy consumption. Not every part of your building needs equal lighting.

With that in mind, design according to purpose and look at how each space is used to determine how much lighting is actually required and retrofit accordingly. Design to the latest code of practice, or better, with lower power density. Lowering your power density means reducing wattage per square metre, while still maintaining the same light output (or lux level).

“We notice that the government and businesses are increasingly making efforts towards the Net Zero goal for a better living environment. It’s not just about changing the buildings to save energy. It’s about changing the mindsets of the people in them. From raising awareness about the benefits of renewable and efficient energy tactics to making sure the technologies installed are used properly – it’s up to us to change our behavior around the energy transition,” said Trang Bui, country head, Cushman & Wakefield Vietnam.

Retrofitting is a great way to make a positive impact on the environment and could reduce your building’s carbon emissions by 70%. But retrofitting isn’t all or nothing. There are various levels of investment that can yield different energy savings. So wherever your real estate project is on its carbon journey, now is the time to get going.