In terms of climate change, the built environment requires special attention.
It is responsible for approximately one-quarter of the world’s greenhouse gas emissions and includes residential homes, industrial facilities, and infrastructure. Decarbonising the built environment is crucial for a sustainable future, but it presents significant challenges that must be addressed for effective solutions to be implemented on a large scale.
The built environment has a considerable environmental footprint and is responsible for approximately 26% of greenhouse gas emissions and 37% of combustion-related emissions.
The emissions associated with the construction process include both operational emissions, which are linked to building maintenance and energy consumption, and intrinsic emissions, which are linked to the production and transport of building materials.
To accelerate efforts to decarbonise the built environment, a report edited by Mckinsey entitled ‘Building value by decarbonising the built environment’ has identified 22 effective measures that could reduce global emissions by 75% if implemented on a large scale over the next five to ten years.
However, their large-scale adoption faces a significant challenge: industrialisation. The built environment is highly diverse and fragmented, making it difficult to standardise practices and technologies. What’s more, many industry players may not be aware of the benefits and economic potential of these decarbonisation levers.
To successfully industrialise decarbonisation solutions, industry players need to address these challenges. Crucial steps include creating coherent supply chains, developing best procurement practices, and building a skilled workforce. Industrialisation has the potential to reduce input costs, capital expenditure, risk, and financing costs, making it an attractive prospect for businesses.
It is important to note that pioneers who lead the industrialisation and commercial adoption of decarbonisation solutions can create substantial value. The report highlights 17 business opportunities in decarbonising the built environment, ranging from property development and construction to materials manufacturing and design companies. Collaboration across the value chain, even between competitors, should be crucial to success.