OPINION

This article appeared in the Summer 2009 edition of BC Construction Monitor.

Green means new opportunities for contractors

- Philip Hochstein

There’s lots of talk about the “green economy” and the business opportunities that our ever-increasing environmental consciousness could create.  But is that reality or wishful thinking? For the construction industry, it’s very much reality.   

Projects driven by green objectives are already creating a lot of construction work, and will drive even more business for contractors in the future.  They’re one distinct bright spot at a time when the industry outlook is otherwise very uncertain.  

In fact, construction may well be the major industry for which the connection between “green” and “commercial opportunity” is the clearest and most direct. 

“Going green” on a meaningful scale, after all, has to be about more than sorting the recycling and turning off the lights.  It involves construction-heavy activities like generating more renewable energy and retrofitting existing buildings.  And here in BC, the provincial government was quick to establish clear requirements for prompt action. 

The province’s Climate Action Plan, for example, is cutting-edge and ambitious.  BC was the first North American jurisdiction to implement a broad-based carbon tax, has set GHG reduction targets kicking in just three years from now, and through the Pacific Carbon Trust is already purchasing carbon offset credits.  And both the provincial government and more than 170 local governments have committed to going carbon-neutral by 2010 and 2012 respectively. 

This momentum is now being seen more widely.  Most notably, the Obama administration has embraced the notion of a cap-and-trade-based carbon-reduction plan.  Our federal government appears keen to coordinate its efforts, and leaders of the eight major industrial countries recently committed to important shared GHG-related targets.  

Clearly, we’re moving towards a “low-carbon economy”, and this will drive many new construction projects and upgrades as industry and individuals adapt to new regulations and realities. Some numbers released by the Washington State government earlier this year underscore the employment benefits for our sector.  Starting with a common-sense definition that “green jobs promote environmental protection”, it came up with a conservative count of 47,000 such jobs in the state – with construction employment accounting for 45 per cent of them.  The picture is likely very similar in BC. 

Key among current green-driven construction opportunities here are those created by independent power projects (IPPs).  Private entrepreneurs are building a network of mostly small-scale hydro projects around BC.  This is already generating opportunities for construction contractors of varying sizes and the IPP sector has potential for significant further growth. 

Energy retrofits and other environmental motivations are also helping drive a resilient renovation market, and this is creating opportunities for even the smallest-scale contractors.  Various government incentives, such as those offered through the LiveSmart BC program, are accelerating the pace of renovations and other construction. 

The fact that we live in a province that leads in green regulation, awareness and market demand doesn’t just mean a large volume of construction opportunities – it also gives BC contractors an opportunity to be on top of emerging trends and techniques.   

The growing application of LEED and other certifications shows that many BC contractors are positioning themselves as leaders in the burgeoning green-building market.  Recent building code changes may help solidify this leadership position, and the competitive advantage it could represent for contractors who market their expertise outside the province. 

ICBA is also working to ensure that the environmental benefits construction delivers are factored into government decisions regarding measurement of and credit for carbon savings.

Green construction and related opportunities won’t fully take up the slack that the weak economy has created.  But it’s fortunate that such investments are ramping up so significantly right now.  They offer a unique combination of further reductions in society’s environmental footprint, and huge commercial opportunity for contractors.