LEED certified buildings are intended to use resources more efficiently when compared to conventional buildings simply built to code. However, analysis of energy and water use data from New York City shows that LEED certification does not necessarily make a building more energy or water efficient.
Often, when a LEED rating is pursued, the cost of initial design and construction rises. There may be a lack of abundant availability of manufactured building components that meet LEED specifications. Pursuing LEED certification for a project is an added cost in itself as well. This added cost comes in the form of USGBC correspondence, LEED design-aide consultants, and the hiring of the required Commissioning Authority (CxA)—all of which would not necessarily be included in an environmentally responsible project, unless it also sought a LEED rating.[citation needed]
However, these higher initial costs can be effectively mitigated by the savings incurred over time due to the lower-than-industry-standard operational costs typical of a LEED certified building. This Life cycle costing is a method for assessing the total cost of ownership, taking into account all costs of acquiring, owning and operating, and the eventual disposal of a building. Additional economic payback may come in the form of employee productivity gains incurred as a result of working in a healthier environment. Studies have suggested that an initial up-front investment of 2% extra will yield over ten times the initial investment over the life cycle of the building.
Further, the USGBC has stated support for the Architecture 2030, an effort that has set a goal of using no fossil-fuel, greenhouse-gas-emitting energy to operate by 2030.
In the progression of sustainable design from simply meeting local buildings codes to USGBC LEED (Certified, Silver, Gold and Platinum) to the Architecture 2030 Challenge, the Living Building Challenge is currently the most stringent sustainable design protocol. The LBC sets 20 imperatives which compel building owners, designers, operators and tenants beyond current USGBC LEED rating levels.
LEED is a design tool and not a performance measurement tool. It is also not yet climate-specific, although the newest version hopes to address this weakness partially. Because of this, designers may make materials or design choices that garner a LEED point, even though they may not be the most site- or climate-appropriate choice available. On top of this, LEED is also not energy-specific. Since it only measures the overall performances, builders are free to choose how to achieve points under various categories. A USA TODAY review showed that 7,100 certified commercial building projects targeted easy and cheap green points, such as creating healthy spaces and providing educational displays in the building. Few builders would really adopt renewable energy because the generators for those energy resources, such as solar photovoltaic, are costly. Builders game the rating system and use certain performances to compensate for the others, making energy conservation the weakest part in the overall evaluation.
LEED is a measurement tool for green building in the United States and it is developed and continuously modified by workers in the green building industry, especially in the ten largest metro areas in the U.S.; however, LEED certified buildings have been slower to penetrate small and mid-major markets. Also, some criticism suggests that the LEED rating system is not sensitive and does not vary enough with regard to local environmental conditions. For instance, a building in Maine would receive the same credit as a building in Arizona for water conservation, though the principle is more important in the latter case. Another complaint is that its certification costs require money that could be used to make the building in question even more sustainable. Many critics have noted that compliance and certification costs have grown faster than staff support from the USGBC.
For existing buildings LEED has developed LEED-EB. Research has demonstrated that buildings that can achieve LEED-EB equivalencies can generate a tremendous ROI[citation needed]. In a 2008 white paper by the Leonardo Academy comparing LEED-EB buildings vs. data from BOMA's Experience Exchange Report 2007 demonstrated LEED-EB certified buildings achieved superior operating cost savings in 63% of the buildings surveyed ranging from $4.94 to $15.59 per square foot of floor space, with an average valuation of $6.68 and a median valuation of $6.07.
In addition the overall cost of LEED-EB implementation and certification ranged from $0.00 to $6.46 per square foot of floor space, with an average of $2.43 per square foot demonstrating that implementation is not expensive, especially in comparison to cost savings. These costs should be significantly reduced if automation and technology are integrated into the implementation.