There may be opportunities in the offing for Australian suppliers in the green building business following a new deal between the green building councils of Australia and India.
The councils have signed an agreement which aims to demonstrate how Indian building projects can qualify for carbon offset credits - delivering sustainable building benefits to India and providing opportunities for Australian investors, developers and service providers with expertise in green building.
The Chairman of the Green Building Council of Australia, Mr Tony Arnel, and the Chairman of the India Green Building Council, Dr Prem Jain, signed a Memorandum of Understanding (MoU) today at the annual Indian Green Building Congress in Chennai.
"This MoU is a groundbreaking project that could give Australian companies an edge in the rapidly growing Indian construction market," says Mr Arnel.
"According to Austrade, more than 15 million homes, about 1,000 shopping malls, 100 million square feet of offices and 500 townships, along with airports, hotels, hospitals and schools, are set for construction in India by 2011-2012.
A major component of this is sustainable building and construction with that section of the market having almost trebled on average every year since 2003, with more than 25 million square feet to be constructed in India during 2012 alone.
"McGraw Hill Construction reports that India's total construction market is worth more than $215 billion and Edelweiss Capital estimates the commercial building market is growing at 25-30 per cent each year, spurred on by the lifting of restrictions on foreign investment in the past couple of years.
"This is creating huge opportunities for Australian investors, developers and service providers, who have strong expertise in green building.
"The Indian Government is looking for ways to reduce greenhouse gas emissions while maintaining economic growth and improving the quality of life in Indian cities. It is well-established that the building sector offers the lowest-cost carbon abatement opportunities - green buildings often pay for themselves through energy savings - while also offering a better quality urban environment.
"Greenhouse gas emission savings from improved energy efficiency in developing countries also potentially qualify for recognition as carbon offsets, and this will be the focus of the collaboration between India and Australia through this MoU.
"The Indian Green Building Council will select a private sector developer's building project in India, where the emissions will be measured through application of the Common Carbon Metric being developed by the World Green Building Council."
