Greening the Construction Sector
Summary
The report identifies a growing demand for energy-efficient construction in South Africa, driven by electricity price increases of over 200% since 2009 and the mandatory SANS 10400 XA regulations. It highlights significant opportunities in bulk insulation for public sector housing, estimated at over R9 billion over five years, and the rise of Light Steel Frame Building (LSFB) methods in residential and commercial sectors. The Western Cape is positioned as a strategic hub for green technology, supported by the Atlantis greentech Special Economic Zone (SEZ) and local government incentives.
Key insights
- Energy efficiency in the South African construction sector is primarily driven by legislative changes and rising electricity costs, which have increased by more than 200% since 2009.
- The SANS 10400 XA regulation, which became mandatory for all building projects in South Africa on 10 November 2011, requires new and renovated buildings to be designed and insulated for improved energy efficiency.
- Public sector housing subsidy programmes are estimated to create over R9 billion in opportunities for bulk insulation over the next five years. In the Western Cape, annual opportunities include R128 million from Breaking New Ground (BNG), R34 million from the People’s Housing Process (PHP), R19 million from Informal Settlement upgrading, and R15 million from Rental Housing (GAP).
- Light Steel Frame Building (LSFB) construction has seen extensive growth in both private and public sectors, particularly in commercial multi-storey offices and retail franchises like McDonalds and KFC. In 2013, LSFBs drove demand for 0.9 million m² of bulk insulation and 0.6 million m² of external cladding.
- The Green Star SA rating programme has seen significant growth, with over 210 projects initiated nationwide. The Western Cape accounts for 67 of these projects, primarily in multi-unit office developments.
- The Western Cape is establishing itself as a green economy hub through the Atlantis greentech Special Economic Zone (SEZ), which proposes incentives such as a 15% company tax and building allowance to attract green technology manufacturing.
- Alternative Building Technologies (ABTs) face market entry barriers including a lack of awareness and trust among specifiers, lack of acceptance by low-income end users, and the high costs of Agrément certification for SMEs.
Cite the original document
- APA
- GreenCape (2015). Greening the Construction Sector. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Market-Intelligence-Report-2015-Greening-the-Construction-Sector-3.pdf
- Chicago
- GreenCape. Greening the Construction Sector. 2015. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Market-Intelligence-Report-2015-Greening-the-Construction-Sector-3.pdf.
- Wikipedia
- {{cite report |author=GreenCape |title=Greening the Construction Sector |date=2015 |url=https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Market-Intelligence-Report-2015-Greening-the-Construction-Sector-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{greencape2015greening, author = {{GreenCape}}, title = {{Greening the Construction Sector}}, institution = {GreenCape}, year = {2015}, url = {https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Market-Intelligence-Report-2015-Greening-the-Construction-Sector-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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