Delivering a Low Carbon Economy Keith Clarke Chairman Construction Industry Council

From this… Corporate Social Responsibility 2 How many dead polar bears does it take to change a light bulb? If you haven’t replaced all your incandescent bulbs with Compact Fluorescents, you’re contributing to Global Warming and driving Polar Bears toward extinction. Ban the Bulb!

Climate change What is the evidence? In 1750 the Earth’s atmosphere had 280 parts per million of CO 2 By 2005 the levels had increased to 379 ppm of CO 2 and the Earth’s temperature had risen by 0.76 degrees. By 2100, the Earth’s temperature may rise by degrees and sea levels may rise by 0.18 to 0.59 metres. HUMAN CAUSE IS UNEQUIVOCAL 3 Source: International Panel on Climate Change

To this … a realisation of danger 2°C ?

And this … A fundamental part of the economy 5 Green stimulus spending (USD billion) Breakdown of U.S. Green stimulus spending Rail 9% Grid 11% Water waste 14% Renewables 23% Energy efficiency 32% Low Carbon 5% Source HSBC 2009

Look who’s talking now… 6

Some issues remain… SAFETY in construction HEALTH of site workers DIVERSITY in professionals 7

Carbon Budget 8

Strategic decision making Reviewing strategic investment decisions on the basis of carbon? When would carbon intensity over-ride cost? Can we guide capital investment and operational budgets? –Capital premium for long-term low energy consumption? –Pay-back periods and discount rates? 9 Bahrain World Trade Center, opened in 2008

20:20 hindsight would be great What are the risks? Climate change uncertainty means uncertainty for any design specification Legal action if infrastructure fails? Code evolvement Zero new carbon homes by 2016 Zero carbon new non-domestic buildings by 2019 Can codes change fast enough? Skills development, knowledge transfer, tools 10

Can we predict what will happen? Shorter design life? Infrastructure / buildings, e.g. London 2012 Games has 100+ non-permanent structures Standards & materials will change? Recyclable / reusable Built Environment professionals need to be ≥3 years ahead of society In old money that’s ≥6 years… 11

Engineers can solve the challenges of carbon reduction 12 "If you really want to change the world - choose a career in engineering. And I mean real engineering, not financial engineering” Rt. Hon. Lord Mandelson, 24 Nov 2008