Study Proves Green Buildings are Highly Cost Effective
The most comprehensive study ever done on the cost and financial benefits of green buildings demonstrates that the financial benefits exceed the cost by a factor of 10 to 1.

Washington, DC - October 17, 2003 -
Investments in green buildings pay for themselves 10 times over, according to a new study for 40 California agencies. The study, by the Capital E group, Lawrence Berkley Laboratory and participating California state agencies, is the most definitive cost-benefit analysis of green building ever conducted.

With this study, the California Department of Finance, for the first time, has signed off on the existence of financial benefits associated with improved health productivity and lowered operations and maintenance costs in green buildings. The California Board of Regents also drew on the early findings of this study and is moving forward in pushing for all state higher education new construction to be "green". This study, drawing on national data for a hundred green buildings and an in depth review of several hundred existing studies, found that sustainable buildings are a very cost-effective investment.

USGBC President & CEO, Christine Ervin who served as a member of an advisory committee that guided the study, says, "The study's conclusive findings demonstrate that green building is cost-effective and makes good business sense."

Greg Kats, a Principal at Capital E, and the lead author of the report stated that "The report should permanently lay to rest the myth that green buildings are not cost effective and not ready for prime time."

The report concluded that financial benefits of green design are between $50 and $70 per square foot in a LEED building, over 10 times the additional cost associated with building green. The financial benefits were found to be in lower energy, waste and water costs, lower environmental and emissions costs, and lower operational and maintenance costs and increased productivity and health.
Summary of Report Findings:

What are green buildings?
"Green" or "sustainable" buildings use key resources like energy, water, materials, and land more efficiently than buildings that are just built to code. They also tend to create healthier work, learning, and living environments, with more natural light and better air quality, and typically contribute to improved employee and student health, comfort, and productivity.

About LEED
The LEED™ (Leadership in Energy and Environmental Design) Green Building Rating System is the national standard for green building. It is a voluntary third-party rating system where credits are earned for satisfying specified green building criteria. Projects are evaluated within six environmental categories: Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources, Indoor Environmental Quality, and Innovation and Design. Certified, Silver, Gold, and Platinum levels of green building certification are awarded based on the total credits earned.

About USGBC
Headquartered in Washington, D.C., the U.S. Green Building Council is the nation's leading coalition for the advancement of buildings that are environmentally responsible, profitable, and healthy places to live and work. Established in 1993, the Council offers various products and services including the LEED Green Building Rating System™, Greenbuild annual International Conference and Exposition, membership summits,
information exchange, education, and policy advocacy.

About Capital E
Capital E is a premier national provider of strategic, technical, and deployment assistance for clean technologies, distributed energy and green buildings. Capital E clients include Fortune 100 companies, states, real estate firms and venture capital firms. For more information on Capital E, including slides summarizing the report findings, please visit www.cap-e.com.

About the principal author
Greg Kats is a founding Principal of Capital E and a leading expert on clean energy technologies and high performance buildings. From 1997 to 2001 he served as the Director of Financing for the country's largest clean technology R&D and deployment program (>$1 billion) at the U.S. Department of Energy.