The buildings in which people work, live, and play produce a huge amount of carbon emissions; building operations accounted for 30 per cent of global energy consumption in 2021. The building sector, like so many other economic sectors, is on a journey to become more sustainable.
Singapore, along with many other cities, faces the challenge of reducing its carbon footprint; buildings account for over 20 per cent of carbon emissions. Recognising the urgency of the situation, Singapore has pledged to have at least 80 per cent of its buildings certified green under the Green Mark scheme by 2030. This commitment reflects Singapore’s determination to raise the sustainability bar for buildings.
Achieving significant reductions requires a collective commitment to sustainability, including improved energy efficiency in buildings. This involves building owners, industry professionals, policymakers, and other stakeholders transitioning to the best solutions to enhance building performance.
While many stakeholders are making the transition, the question remains: why aren’t all building owners moving more quickly to adopt sustainable solutions that deliver reduced costs and reduced carbon footprints?
The challenges of operating traditional cooling systems
Buildings play a substantial role in greenhouse gas emissions, accounting for a significant portion of both direct and indirect emissions. In 2021, eight per cent of global CO2 emissions came from the use of fossil fuels in buildings, while six per cent were linked to the manufacturing of construction materials. However, the largest share of emissions, amounting to 19 per cent, resulted from the electricity and heating/cooling used in buildings.
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Building owners must provide comfortable environments for their tenants. In tropical climates, the solution to that traditionally involves purchasing, installing, and operating cooling systems. This process is complex, requiring multiple consultants, contractors, and operators, and comes with substantial upfront, ongoing costs for maintenance and operations, and inefficiencies that increase carbon output.
It is worth noting that despite advancements in cooling equipment performance and the decreasing carbon intensity of electricity production, indirect CO2 emissions from space cooling have experienced rapid growth. These emissions nearly tripled from 1990 to slightly over 1 Gt CO2 in 2022, with emissions in 2022 surpassing those in 2021 by over two per cent. With global temperatures on the rise, the demand for cooling is expected to escalate further.
For building owners and managers, transitioning to smart and sustainable cooling solutions has become a necessity rather than a choice. Governments worldwide are tightening their carbon policies, and Singapore is no exception. In its latest budget, the government announced progressive increases in the carbon tax, which is anticipated to reach US$50 to US$80 per tonne by 2030. This tax applies to all spaces generating 25,000 tonnes or more of greenhouse gas emissions annually, emphasising the need for sustainable practices in cooling and other areas.
AaS (As-a-Service) models for building operations
Drawing inspiration from subscription models like Netflix and Spotify, As-a-Service (AaS) models provide a pathway to addressing the challenges of sustainable building operations. AaS offers on-demand and customised services to meet the unique needs of businesses.
With AaS, businesses can bypass the need for upfront capital expenditure (CAPEX) costs and save money by accessing services. This allows for scaling operations, enhancing efficiency, and allocating resources more effectively.
Introducing CaaS: Cooling as a Service
Within the As-a-Service model is Cooling-as-a-Service (CaaS), offering building owners a hassle-free approach to cooling solutions without the burdens of ownership. The advantages of CaaS are extensive, beginning with the elimination of upfront capital investments and ongoing maintenance expenses and, through greater efficiencies, reducing carbon footprints.
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With CaaS, building owners outsource a non-core yet vital activity. By closely monitoring and controlling the cooling system in real-time and utilising data and artificial intelligence, CaaS maximises cooling performance, eliminates energy waste, and enhances indoor experiences that adapt to changing building conditions.
Embracing CaaS also enables businesses to reduce their carbon emissions and environmental impact. Building owners can specify their cooling requirements and pay a fixed rate based on actual usage. Through comprehensive data analytics, building owners can gain valuable insights into their environmental footprint and identify areas for improvement.
For example, INSEAD Asia Campus and 1Elpro Park, both working with Kaer, have successfully reduced their carbon footprint with CaaS. They use the latest energy-efficient technologies and are powered by 100 per cent renewable energy. Collectively, Kaer saved its larger client portfolio 25,000 metric tonnes of carbon in 2022.
Transition to a low-carbon economy with CaaS
CaaS presents a golden opportunity to reduce carbon footprints, achieve cost savings, and streamline operations.
This CaaS transition not only accelerates the journey towards carbon neutrality and a climate-resilient future but also enables the handover of operating and maintaining cooling systems to experts. This allows businesses to focus on their core operations while enjoying the financial and environmental advantages associated with the ‘as-a-service’ economy.
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