Reducing emissions through 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 being urged to abandon plastic, meat, and cars for the past eight years, these measures have proven to be ineffective distractions or even self-sabotage in the fight against climate change.

During these eight years, global temperatures have continued to reach record highs. Europe, in particular, has experienced extreme weather conditions, resulting in devastating wildfires and catastrophic flooding in countries like Pakistan and Canada. Focusing on initiatives like converting the entire population to vegetarianism will not be sufficient or timely enough to make a significant impact. Instead, we must prioritize and address sectors that have a more substantial influence.

The built world, encompassing our living spaces, workplaces, shopping centers, and creative hubs, is the largest contributor to carbon emissions and requires urgent transformation. Redirecting our energy and capital towards this sector is crucial if we hope to make a difference.

Real estate, valued at $330 trillion, is the world's largest industry. However, it is also the least digitalized and most polluting asset class. Concrete alone accounts for up to 8% of global greenhouse emissions, and one-third of solid waste in Europe and North America is generated from construction and demolition activities. The built world industry as a whole is responsible for 40% of global energy-related carbon emissions.

These numbers are staggering, and if left unaddressed, these emissions are projected to double by 2050 as our economies continue to expand to accommodate growing populations and rapid urbanization.

Furthermore, the challenges posed by rising interest rates, inflation, and the shift towards remote work have exacerbated the issues faced by the built world. Cities like London are experiencing vacancy rates of 14% in office spaces.

Europe, however, has a unique advantage in this regard. It has already invested over $4.5 billion in green construction technology between 2017 and 2022, with more than half of these investments occurring in Europe. The region's regulations on renewable energy, building standards, and sustainability are at the forefront globally. The research conducted at European universities can pave the way for a climate tech industry that serves the entire world.

Climate tech has defied broader economic trends and attracted a record $65 billion in venture capital funding worldwide last year. It is essential for this sector to transform traditional industries that currently contribute to 20% of global GDP, such as steel and cement production.

Innovations are being made across all stages of the built world's lifecycle, from supply chain management to the development of 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.

It is crucial that we realize the urgency of the situation and understand that we do not have the luxury of time. Setting a deadline like 2050 may create political complacency and a false sense that we can delay implementing real change. Investors play a crucial role in directing capital towards industries that can bring about meaningful change. Time is running out, and without focused action, we risk acting too late.

FutureCar Staff