Reducing emissions: Focusing on buildings, not meatless burgers

author: FutureCar Staff    

The key to reducing emissions and tackling climate change lies in prioritizing the transformation of our buildings, rather than focusing on meatless burgers, according to Gregory Dewerpe. While efforts to encourage people to ditch plastic, meat, and cars have been emphasized in the past eight years, these measures have not resulted in significant reductions in temperatures or emissions. Instead, extreme weather events such as wildfires and flooding continue to occur. To make a real impact in time, we need to shift our attention and resources towards the built world, which is the most carbon-emitting sector.

Real estate, as the world's largest industry, is also the least digitized and most polluting asset class. Concrete alone contributes up to 8% of global greenhouse emissions, and the construction and demolition of buildings generate a third of solid waste in Europe and North America. The built world industry is responsible for 40% of global energy-related carbon emissions. If left unchecked, these emissions are projected to double by 2050 due to population growth and rapid urbanization.

Furthermore, economic challenges such as rising interest rates and inflation, along with the shift towards remote work, have exacerbated the problems faced by the built world. Cities like London are experiencing high office vacancy rates. However, Europe presents a unique advantage in terms of green construction technology investment, with over $4.5 billion invested between 2017 and 2022. European regulations and research in renewable energy, building standards, and sustainability are leading the way.

Climate tech, which attracted record VC funding of $65 billion globally last year, has the potential to transform traditional industries that contribute to 20% of global GDP, such as steel and cement. Innovations across the entire lifecycle of the built world, from the supply chain to materials, construction techniques, and building operations, offer opportunities for decarbonization and increased efficiency.

It is crucial that we realize the urgency of the situation and understand that we cannot afford to wait until 2050 to implement real change. Investors play a crucial role in directing capital towards industries that can make a difference. Time is running out, and without focused efforts, we risk missing the opportunity to address climate change effectively.

FutureCar Staff