Green Jobs Creation Through Sustainable Refurbishment in the Developing Countries

Organisation:
International Labour Organization (ILO)

This paper provides a review of literature on energy-efficient sustainable refurbishment in developing countries. To this end, it provides an overview of climate change and its impact on the built and natural environment within the context of sustainable development. In particular, it will show the impact of human activity, focusing on the role of buildings, on Carbon Dioxide (CO2) emissions, and consequent greenhouse effects. The paper will consider the main elements of sustainable development and refurbishment in the context of developing countries, with special attention to conditions for attaining social sustainability and the role of employment therein. It will also examine the role of construction in development, with a particular focus on its contribution to pro-poor employment generation and social development objectives while meeting CO2 mitigation targets. The paper concentrates on case studies within Brazil, South Africa and the Netherlands to examine the social, economic and environmental effects of adopting sustainable refurbishment. As two of the most advanced developing countries in their own regions, Brazil and South Africa illustrate the potential for sustainable refurbishment activities in developing countries, while the Netherlands serves as a model, particularly for institutional and policy development purposes. In line with this, the report shall broadly examine the country-specific conditions for detailed energy use patterns and trends, the institutional framework for implementing energy-efficient and sustainable refurbishment policies, and the scope for sustainable refurbishment. The analysis is complemented by a detailed examination of the four case studies which show the potential for sustainable refurbishment in meeting different aspects of sustainable development in practice at a project level. The paper identifies that buildings are the second largest contributors to greenhouse gases (GHGs) in terms of CO2 emissions. Similarly, they provide the greatest economic potential for CO2 mitigation. This is particularly evident in developing countries that have the highest potential (at net negative costs) for mitigating CO2 emissions in buildings. This is because many of the low-cost opportunities for CO2 abatement have already been captured in the more developed economies due to progressive policy instruments in place or in the pipeline, whereas in developing countries this process is still in its infancy. It is also worth noting that developing countries have the largest CO2 mitigation potential results from electricity savings, whereas in developed countries these savings are gained from heat-oriented measures. The former are considered less complicated in terms of switching to more efficient appliances and therefore more appropriate to developing nations with quick payback periods, while the latter involve shell retrofitting and fuel switching that are often more expensive and require longer payback periods, more suited to developed nations. In terms of employment generation, the paper presents different skills requirements for these adaptations and examines the potential for employment creation. It shows that there are significant opportunities for creating employment in developing countries as a result of adopting sustainable refurbishment. This can be through a range of activities; from general refurbishment of residential stock, to specialist work such as installation of photovoltaic (PV) equipment for heating, water pumps and insulation activities. Such an approach also provides the opportunity for skills development and training far beyond traditional building skills due to the added requirement for sustainable retrofitting and systems installations. In addition the paper shows that, in practice, sustainable refurbishment provides major opportunities for meeting other aspects of social sustainability. These include community development and participation, as well as contributing to the broader local and city/national economic development through local employment generation and the multiplier effects on other sectors of the economy. Nevertheless, the paper establishes that there is still a great deal of work that must be done in developing the institutional framework to facilitate sustainable refurbishment activity. The paper concludes by providing a number of policy considerations that would facilitate the wider adoption and implementation of energy-efficient sustainable refurbishment in developing countries as a whole.