Michelangelo, the Italian Renaissance thought leader once said, “The greater danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” So why are we here at the “20-Now Action Forum”? To aim high and set big goals.
Thank you for that kind introduction - and good morning. I’d like to congratulate the Energy Efficiency Partnership of Greater Washington, the Meridan International Center and all those that support the “20-Now Action Forum” for sponsoring this important dialogue.
Here in the Washington, DC area the Chesapeake Crescent Initiative has helped increase the region’s competitiveness in building a more green and sustainable economy. We also have the Partnership’s Founding Partner Virginia Tech University President Dr. Charles Steger here with us and participating in the program. It is most certainly an honor for me to address this assembled group of building and industry leaders.
It is hard to pick up a newspaper or a trade magazine without reading about sustainability, climate change, emission reduction and green building.
Today you will have an opportunity to listen to innovative thinkers, officials, financiers and building owners on the “Business Case for Greening Your Building.” You will meet and exchange ideas with your peers - people who commit to making a difference in the communities in which they live, work and do business – and in the role they play in the building industry – to benefit not only DC, but also our planet!
At United Technologies, we believe in sustainable development. We don’t choose between growth, profitability and sustainability. We pursue all with passion and precision. In our own operations in the past ten years we have reduced energy use by 19% while more than doubling in size. During that same time we’ve reduced water consumption by 49%, enough drinking water for 14 million people for a year or enough drinking water to serve the District of Columbia for 24 years. Think about it - that is a business case for sustainable practices.
We build efficient products and reduce our own impact not just because it is good for the environment – but also because it is good for our shareholders and brings real value to the company, our customers and partners. It’s about increasing efficiency and eliminating waste. The opportunity to conserve energy by improving efficiency is infinite. UTC’s Chairman George David has said that “green” means continually increased efficiencies in both operations and products – and UTC does not see an end in sight for those efficiencies.
Few innovations have shaped modern life more dramatically than the ability to control indoor climate – it’s really quite remarkable. Buildings exist and entire cities have been developed around the world today that would not be there without air conditioning.
But as remarkable as the invention of air conditioning by Willis Carrier is, today we are presented with a challenge and a new reality. This year, for the first time ever, more than half the world’s population will live in urban rather than rural areas. The world and modern man will demand more and better indoor comfort; this is a given. But the need for greater and greater energy efficiency and sustainable buildings is a must.
Let me share some startling realities.
- Americans increased electrical consumption by 21% in the last decade -- and 55% in the last two decades.
- U.S. foreign oil dependence has grown to 52%, the highest level in last 15 years.
- In the United States, buildings consume approximately 37% of the energy and 68% of the electricity produced annually, according to the U.S. Department of Energy.
Now for the projections:
- The International Energy Agency estimates that current trends in energy demand for buildings will stimulate about HALF of energy supply investments to 2030.
- Energy use is increasing and worldwide building energy consumption is expected to grow 45% over the next 20 years.
- Energy use for US buildings is higher than other countries – with the European Union, China, India, Japan and Brazil using less energy per capita for this sector.
This issue is not going away. It will take industry leaders like the Energy Efficiency Partnership of Greater Washington, the US Green Building Council, United Technologies and Carrier Corporation working with all of you to tackle this issue, challenge and opportunity head on.
These are big numbers that require big attention and bold actions.
We must all lead the commercial building industry in Washington DC and around the globe to educate, train, design, develop, finance and build products, systems and buildings that are sustainable and enduring for future generations.
Moving from buildings that burn artificial lights all day and are lit up all night long, while empty offices are being cooled, to buildings vibrant with natural lighting during the day and smart enough to go dark and use less cooling at night when there is little or no occupancy.
The speakers today will challenge you to define what sustainable and green truly means for the commercial building industry in the greater Washington, DC area….what is currently working…and what could be improved…and the business case for going green.
Each of you in this room grows by engineering and building new possibilities. UTC businesses tackle worldwide issues and our services and products transform markets through relentless innovation.
At United Technologies we are taking bold actions.
Bill Sisson, from United Technologies is a member of the first panel this morning. He will tell you about the World Business Council for Sustainable Development – and the UTC project with Lafarge and other corporate sponsors to reduce energy intensity in the entire building cycle.
The project team set a big and a bold goal: energy self sufficient buildings with zero CO2 emissions that are commercially viable with full market adoption by the year 2050. Zero net energy consumption – producing enough energy as the building requires - is a big, bold and important goal. Bill and the WBCSD team want to help us all to understand what commitments are needed to get there.
Investing in improving operating costs makes good business sense. From 2007 to 2010 UTC will invest 100 million dollars in energy conservation projects, including co-generation systems. Cogeneration is an energy-efficient, environmentally-responsible method of producing electricity, steam and/or hot water at the same time, in one process, with one fuel.
Carrier installed a co-generation system recently at sister company Pratt & Whitney’s facility in Middletown, Connecticut. We will actually be “cutting the ribbon” on the plant on Friday afternoon. With the operation of this facility – Pratt and Whitney is taking 7.5 mega-watts of power off the grid – this is the equivalent to providing power to 7,500 homes annually.
Let me come back on a point I made earlier. UTC believes that a commitment to sustainable and environmentally sound practices is more than just being a responsible corporate citizen – it makes good business sense. That is why in 2008, UTC began using the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system in all new facilities - whether owned or leased. With a worldwide real estate portfolio of more than 100 million square feet, we are committed to designing and building new facilities with the lowest possible environmental footprint.
Carrier partnered with other UTC companies to develop one of these new facilities. Last year, the Otis Elevator TEDA Center opened in China. Located in the Tianjin Economic-Technological Development Area, this world-class manufacturing facility is designed to meet LEED Gold standards and uses advanced technologies and green building practices to lower energy consumption by at least 25 percent when compared with conventional construction methods, materials and systems.
Beyond working with UTC companies like Otis and Pratt and Whitney, Carrier partners with companies around the world to support both sustainability and business goals.
We signed a Memorandum of Understanding with the Clinton Climate Initiative to provide energy-efficient, non-ozone depleting water-cooled chillers to C40 cities and private building owners in the C40 – we are proud to be the first HVAC company to sign an MOU with the Clinton team for energy-efficient products. This agreement is another testament to our commitment as an environmental champion. Both Carrier and CCI recognize that it is critical to accelerate the adoption of new, affordable energy-saving technologies in the C40 cities – which comprise nearly half of the global population, consume 75 percent of the world's energy, and produce nearly 80 percent of its greenhouse gas emissions.
To reach big goals we need to be prepared to walk the talk.
With a long tradition of environmental leadership, Carrier has addressed the environmental effect of products well in advance of regulatory timetables as we pioneered the global phase-out of chlorofluorocarbons in 1994 and introduced Puron, a non-ozone depleting refrigerant, into air conditioning systems in 1996. We are committed to leading the transition away from hydrochlorofluorocarbons, as well as, to further promote ozone preservation.
All of UTC’s seven businesses convert energy to useful work – Carrier’s expertise is energy efficiency and we are proud to have been involved in some exciting projects in the DC area - including the renovation of the Mount Vernon estate buildings as air conditioning was added to George Washington’s home.
And, two months ago I was here to participate in the opening of the Lincoln Cottage…the rehabilitated Visitor Education Center at the Lincoln Cottage site will be the first National Trust Historic site to qualify for LEED certification from the US Green Building Council.
On the commercial building side we worked on the New Census Building in Suitland, Maryland, installing three high efficiency Evergreen chillers with non ozone depleting refrigerant. That building is one of the buildings in the pipeline to achieve LEED certification.
There has been significant growth of LEED standards for buildings thanks to the leadership of the US Green Building Council. Last year more than 1,000 LEED projects were registered in the U.S, representing more than 100 million square feet. Here in DC there are currently 25 LEED buildings and 239 registered projects in the pipeline. Carrier, a founding member of the U.S. Green Building Council, leads the industry in creating total building solutions that meet and exceed new environmental sustainability and system performance benchmarks.
Last year UTC became the founding sponsor of Greenbuild365, an online training tool that fosters green building education, outreach and the sharing of best practices – an extension of the annual Greenbuild Conference. This learning portal is available for you to use today to stay up to date on the latest sustainable thinking.
Significant progress in sustainable building development will only be achieved if all of us set big and bold goals…and drive after them with a passion. This is particularly important in Washington, DC. The world is watching this wonderful city. Engagement and leadership will be good for the city and good for the world. I travel to cities all over the world and they hold Washington in high regard – and look to you to lead the way.
Our call to action here is to learn, explore and challenge. Today we will have the opportunity to do just that – together. All of us, working together as owners, designers, builders and leaders must lead the renaissance in sustainable building development. It is achievable if we take Michelangelo’s advice to set big goals. Big goals get big results.
Thank you.
