Reducing emissions: Focus on buildings, not meatless burgers

author: FutureCar Staff    

The key to reducing our emissions lies in our buildings, rather than in meatless burgers, according to Gregory Dewerpe. Despite the emphasis on ditching plastic, meat, and cars over the past eight years, these measures have not made a significant impact on reducing emissions. Instead, they have served as distractions or even self-sabotage.

During these eight years, global temperatures have continued to reach record highs. Extreme weather events, such as wildfires and flooding, have caused devastation in Europe, Pakistan, and Canada. Focusing on making the entire population vegetarian will not be effective in combating climate change in a timely manner. We need to shift our priorities and address sectors that have a greater impact.

The built world, which encompasses our homes, workplaces, shops, and creations, is the most carbon-emitting sector globally and requires urgent transformation. This is where our energy and capital should be directed if we want to make a difference. Real estate, as the largest industry worth $330tn, is also the least digitized and most polluting asset class. Concrete alone contributes up to 8% of global greenhouse emissions, and one-third of solid waste in Europe and North America comes from construction and demolition. The built world industry as a whole is responsible for 40% of global energy-related carbon emissions.

These numbers are alarming. If left unchecked, these emissions could double by 2050 as our economies continue to grow and urbanization accelerates. The challenges posed by rising interest rates, inflation, and the shift to remote work have exacerbated the problems in the built world. Cities like London are experiencing a 14% vacancy rate in offices.

However, there is an opportunity for Europe to lead in this area. More than $4.5bn has been invested in green construction technology between 2017 and 2022, with over half of these deals taking place in Europe. European regulations on renewable energy, building standards, and sustainability are setting the global standard. The research conducted at European universities can establish a climate tech industry that benefits the entire world.

Climate tech has defied economic trends and attracted a record $65bn of venture capital funding worldwide last year. It will play a crucial role in transforming traditional industries, which currently account for 20% of global GDP, including steel and cement. Innovations are being seen throughout the entire lifecycle of the built world, from the supply chain to new materials and construction techniques, as well as building operations and management. Every aspect of the built world presents an opportunity for decarbonization and increased efficiency.

We must also realize that time is of the essence. A deadline like 2050 may seem distant, but it can lead to political complacency and a false belief that we can delay implementing real change. Investors have a crucial role to play in directing capital towards industries that can bring about change. If we do not act with focus and urgency, we risk running out of time.

FutureCar Staff