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  • Writer: Ziggurat Realestatecorp
    Ziggurat Realestatecorp
  • 1 day ago
  • 2 min read

INTRODUCTION:


In many low- and middle- income countries, it is commonly believed that weak state and regulatory capacities limit the ability to reduce pollution and mitigate climate impact. In Bangladesh and across South Asia, most brick manufacturing takes place in informal, traditional coal- fired kilns. These kilns are among the largest sources of greenhouse gas emissions and air pollution, leading to an enormous public health burden.


RATIONALE:


In Bangladesh, efforts to improve the brick kiln industry over the past 30 years have had limited success. Our past work suggests that a correctly operated zigzag kiln (a traditional kiln type that accounts for 81% of the sector) can not only improve efficiency but also increase kiln profits. However, most zigzag kilns in Bangladesh are incorrectly operated, leaving these social and private benefits unrealized. Improving energy efficiency presents an alternative strategy to reduce emissions and pollution while also delivering productivity gains.



RESULTS:


We developed a low- cost intervention to improve the energy efficiency of zigzag kilns and conducted a randomized controlled trial (RCT) of the intervention among 276 kilns in Bangladesh.


Our study included a control arm and two intervention arms (a “technical” arm and a “technical+incentive information” arm). All kilns assigned to both intervention arms received information, training, and technical support to adopt operational improvements that improve fuel combustion and reduce heat loss in the kilns.


These improvements specifically targeted how coal is fed during the firing process and how bricks are stacked inside the kiln, along with several other aspects of operation.

Kilns assigned to the “technical+incentive information” arm also received explicit information regarding the business rationale for incentivizing workers to adhere to the new practices. There was high demand for the intervention, with 65% of intervention kilns adopting the intervention’s recommended firing and stacking practices.


Notably, 20% of control kilns also adopted these practices, bolstering the interpretation that demand was high. There were no differences in adoption between the two intervention arms and no use of incentives or benefits in the “technical+incentive information” arm. We studied the intention- to- treat (ITT) effect of random assignment to the intervention, as well as the impact of the intervention after adjusting for compliance using an instrumental variables (IV) framework. Among compliers, the intervention led to substantial reductions in the amount of energy used to fire bricks (23%) and corresponding reductions in carbon dioxide (20%) and particulate matter with a diameter of <2.5 μm (20%).


These gains were achieved without any evidence of a rebound in energy demand. Kiln owners also benefited financially from the intervention; production of the highest quality category of bricks increased in intervention kilns and spending on fuel per brick declined. The primary costs of the RCT were the training costs and technical support costs throughout the season. Using a social cost of carbon of 185 USD per metric ton to value the reductions in CO2 emissions, we find the benefits of the intervention outweighed the costs by a factor of 65 to 1, and that these reductions were achieved at an average cost of 2.85 USD per ton.


CONCLUSIONS:


Our study demonstrates that meaningful reductions in emissions by traditional kilns are achievable, even in the absence of stronger regulations, if they can be made financially attractive to private kiln owners.


  • Writer: Ziggurat Realestatecorp
    Ziggurat Realestatecorp
  • 2 days ago
  • 2 min read

The 17% tariff the US is poised to charge Philippine goods, while favorable compared to rest of the region, is not enough to overcome Vietnam’s cost advantage in furniture, the Chamber of Furniture Industries of the Philippines (CFIP) said.


CFIP Director General Ajun L. Valenzuela said that the Vietnam price advantage over equivalent Philippine goods is about 40%.


“Vietnam’s prices are much cheaper,” he said in a phone interview, adding: “our price difference with Vietnam is around 40%.”


Vietnam’s furniture exports totaled $16 billion in 2024, against Philippine exports of $200 million.


Vietnamese goods will be charged a 46% tariff starting July if it does not negotiate more favorable terms.


The tariff differential “is also good for us because it will make our prices at par with the Vietnam price, but it is not a solution,” he added.


The so-called reciprocal tariffs imposed on US trading partners announced in early April have been suspended for 90 days. In the interim, the US will charge most trading partners a 10% baseline rate.


According to Mr. Valenzuela, the Philippines still has an opportunity “to attract US buyers seeking alternatives to Vietnamese suppliers.”


“We can rely on our strengths: the unique craftsmanship, the indigenous materials, and the reputation or quality… especially in niche and premium segments,” he added.


The US is the largest export destination of Philippine furniture, accounting for $99 million, or 49.7% of the total. The other top markets include the Netherlands, Japan, Germany, and France.


He said it is possible that Singapore, which was assigned a 10% reciprocal tariff, “may act as a re-export hub for Vietnamese furniture.”


“We know for a fact that Singapore is not a furniture manufacturing country, so they sourced before from China, and now they will be sourcing from Vietnam. So, it potentially dilutes the Philippines competitive edge if rules of origin are not strictly enforced,” he added.


“There is also a risk that Vietnamese and Chinese furniture, now less competitive in the US, could be redirected to the Philippines,” he said.


“This could lead to import flooding, increased competition, and downward pressure on prices here,” he added.


The Philippine cost disadvantage lies mainly in labor, he said.


“The Philippine average monthly manufacturing wage is significantly higher than Vietnam’s. In the Philippines it is $420-$450, while Vietnam’s labor cost is only $300-$350,” he said.


“Labor cost makes it difficult for Philippine producers to compete on price, especially for large-scale commoditized orders,” he added.


He said the industry is also disadvantaged in terms of scale, with Filipino small and medium enterprises unable to expand.


He said high electricity costs are also a concern for the furniture sector, along with the sourcing of raw materials.


“Vietnam benefits from proximity to large plantations and easy access to imported timber through established supply chains, while we rely on imported wood,” he said.


He said that the exemption of wood and wood products under the new US tariff regime will allow Philippine manufacturers to import sustainable and certified solid wood from the US at a very competitive rate.


He said establishing Philippine brands in the US market will require sustained investment in marketing, compliance, and relationship-building.


  • Writer: Ziggurat Realestatecorp
    Ziggurat Realestatecorp
  • Jun 2
  • 2 min read

Metro Manila's residential market is projected to see tempered launches of mid-income condominiums over the next three years, although anticipated interest rate cuts and steady inflows of remittances from overseas Filipino workers (OFWs) could help support demand for the segment, according to Colliers Philippines.



“Colliers is optimistic that further interest rate cuts and sustained remittances from Filipinos working abroad should partly lift the demand for mid-income projects,” Colliers said in its First Quarter Metro Manila Residential Report.


Pre-selling launches in the first quarter reached around 5,300 units, marking the highest quarterly level since the third quarter of 2023, Colliers said.


Among the notable projects launched during the period were Avida Land’s Avida Towers Makati Southpoint Tower 3 in Makati; 8990 Holdings, Inc.’s Urban Deca Tondo – Bldg. 7 in Tondo; and Shang Robinsons Properties’ Haraya Residences – North Residences in Bridgetowne, Pasig.


Despite the higher volume of launches, net take-up reached only 87 pre-selling units during the period, Colliers said.


Total back-outs, particularly for older developments, rose to 4,700 units in the first quarter, with the lower and upper mid-income segments accounting for 65% of the total.


Colliers said the central bank’s monetary easing, along with continued OFW remittance inflows, is likely to support a recovery in residential demand.


The Bangko Sentral ng Pilipinas (BSP) cut its policy rate by 25 basis points to 5.5% in April.


BSP Governor Eli M. Remolona, Jr. said the Monetary Board is open to two more rate cuts this year, with one possibly as early as June.


Cash remittances rose by 2.7% in the first quarter, based on BSP data.


“Lower interest rates should result in lower mortgage rates, and this should guide developers with their promos and payment schemes,” Colliers said.


In response, developers are advised to offer more flexible and curated payment terms for ready-for-occupancy (RFO) units, including leasing and early move-in promotions, it added.


Colliers also noted that developers must assess optimal product types and price points when expanding in key locations.


Upscale to luxury projects continue to perform well in central business districts such as Fort Bonifacio, the Makati Central Business District, and the Bay Area.


Meanwhile, mid-income projects remain more attractive in fringe locations such as Alabang–Las Piñas, Manila North, Makati Fringe, Mandaluyong, and the Caloocan–Malabon–Navotas–Valenzuela (CAMANAVA) corridor.


The residential vacancy rate in Metro Manila is expected to reach an all-time high of 26% in 2025, driven by the complete exit of Philippine offshore gaming operators (POGOs) and the scheduled completion of new condominium developments.

Colliers expects pre-selling launches to remain subdued in the near term.


From 2025 to 2027, new supply in Metro Manila is projected to average 5,800 units annually, down significantly from the 13,000-unit yearly average recorded from 2017 to 2019, during the peak of POGO-driven demand.


Despite the projected slowdown, Colliers said it is “not all doom and gloom” for the Metro Manila residential market.


“Recovery will focus around launching the ideal residential product at the right location with a viable price and favorable terms,” it said.


© Copyright 2018 by Ziggurat Real Estate Corp. All Rights Reserved.

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