Green buildings help reduce negative impacts on the natural environment by using less water, energy, and other natural resources; employing renewable energy sources and eco-friendly materials; and reducing emissions and other waste. They can even provide net-positive impact in terms of generating their own energy or increasing biodiversity. Among the industry sectors that are major contributors to greenhouse gas emissions, the building sector has the largest potential difference to make in achieving significant reductions.

The implementation of green building measures that ultimately lead to these performance benefits also translates to economic benefits for multiple stakeholders. Developers benefit from higher property values due to optimized resource utilization and better-performing, longer-lasting buildings. Better buildings are more attractive to business owners and occupants for their environmental benefits, improved comfort, higher efficiency and less waste, and lower operating costs—which also positively impacts occupancy levels.

On top of that, the huge industry and job creation that exists around the development of green buildings continues to grow. And studies are showing that people who work in the improved environment of green buildings are realizing benefits in areas such as work performance and sleep quality.

As the green buildings industry evolves and matures with more support from formal policies, standards, and incentives, the challenge is to continue refining those mechanisms and the building practices and technologies they represent and guide. Since their introduction, green buildings have helped make notable progress in reducing building sector energy consumption and environmental impact.

However, there is opportunity for further improvement and added pressures to accommodate for global growth and balance the economics of green buildings. To keep pace and make additional forward progress, further innovation is needed in areas including but not limited to land use, energy and water conservation, materials, indoor air quality, and construction management.

Limitations of green buildings

The most prevalent limitation for green buildings is their cost. While green buildings can provide significant long-term financial benefits, their initial costs are higher than conventional buildings. The materials and technologies they utilize tend to cost more, the materials may be less readily available, and construction may take longer. Additionally, bank funding for green building projects can be more difficult to secure. Developers and financers must understand the cost savings over the building’s entire lifecycle and be willing and able to make a larger upfront investment.

Another challenge is that renewable energy sources, such as wind and solar, rely on varying weather conditions, which could make green buildings susceptible to fluctuations in energy supply. This also underscores that not all locations are equally suitable for green buildings; proper site selection is an important aspect in successful green building projects.

Related to fluctuations in renewable energy sources is a lack of full control over indoor conditions, such as building temperatures, when relying on natural resources to assist with heating and cooling. To solve for this may require certain building features, including its positioning on a lot to be handled in a non-preferred way or even in conflict with neighborhood zoning or other building guidance.