Reducing emissions: Focus on buildings, not meatless burgers

author: FutureCar Staff    

The key to reducing our emissions lies in our buildings, rather than meatless burgers, according to Gregory Dewerpe. Despite the emphasis on ditching plastic, meat, and cars over the past eight years, the results have been underwhelming. Billion-dollar investments have been poured into measures that are either distractions or self-sabotage.

While efforts like meatless burgers and alternative milks, paper straws, and e-scooters have been presented as urgent climate change solutions, global temperatures continue to reach record highs. Extreme weather events, such as wildfires and flooding, have ravaged Europe, Pakistan, and Canada. It is clear that focusing on the wrong targets, such as promoting an entirely vegetarian population, will not yield the desired results in time. Instead, we need to shift our focus to sectors that have a more significant impact.

The built world, encompassing our homes, workplaces, shopping centers, and creative spaces, is the most carbon-emitting sector globally and requires immediate transformation. Redirecting our energy and capital towards this sector is crucial if we are to make a difference at all.

The real estate industry, valued at $330 trillion, is the largest industry in the world. However, it is also the least digitized and most polluting asset class. Concrete alone contributes up to 8% of global greenhouse emissions, while construction and demolition activities account for a third of solid waste in Europe and North America. Overall, the built world industry is responsible for 40% of global energy-related carbon emissions, highlighting the staggering impact it has on our environment.

If left unchecked, these emissions are projected to double by 2050 due to population growth and rapid urbanization. The challenges faced by the built world are further exacerbated by economic factors such as rising interest rates, inflation, and the shift towards remote work, which has resulted in high office vacancy rates in cities like London.

However, Europe presents a unique opportunity for change. Over $4.5 billion has been invested in green construction technology in Europe between 2017 and 2022, with more than half of these deals taking place in the region. European regulations on renewable energy, building standards, and sustainability are leading the world. The research conducted at European universities can pave the way for a climate tech industry that serves the entire globe.

Climate tech has defied wider economic trends, attracting a record $65 billion in venture capital funding globally last year. It is necessary to transform traditional industries, such as steel and cement, which currently account for 20% of global GDP. Innovations are emerging throughout the entire lifecycle of the built world, from supply chain management to new materials and construction techniques, as well as building operations and management. Every aspect of the built world offers an opportunity for decarbonization and increased efficiency.

We must also acknowledge that time is of the essence. A deadline like 2050 may seem distant, but it fosters political complacency and the belief that we can delay implementing real change. Investors play a crucial role in directing capital towards industries capable of effecting change. Without focus and urgency, we risk running out of time.

FutureCar Staff