Reducing emissions through buildings, not meatless burgers

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【Summary】Investing in meatless burgers and alternative milks won't significantly reduce emissions. Instead, the focus should be on transforming the built world, which is the most carbon-emitting sector. Real estate, the world's largest industry, is responsible for 40% of global energy-related carbon emissions. Without addressing these emissions, they are projected to double by 2050. Green construction tech, particularly in Europe, offers opportunities to decarbonize and increase efficiency.

FutureCar Staff Aug 14, 2023 6:45 AM PT

Reducing emissions through buildings, not meatless burgers

The key to reducing our emissions and tackling climate change lies in prioritizing the transformation of our buildings, rather than focusing solely on meatless burgers and other distractions, according to Gregory Dewerpe. Despite eight years of efforts to reduce emissions, temperatures continue to reach record highs, and extreme weather events such as wildfires and flooding are becoming increasingly common.

While investments have been made in alternative food options and eco-friendly products, the built world remains the largest carbon-emitting sector and is in urgent need of change. The real estate industry, valued at $330tn, is both 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 accounts for a third of solid waste in Europe and North America.

If left unchecked, emissions from the built world are projected to double by 2050 due to population growth and urbanization. Economic challenges, such as rising interest rates and inflation, further exacerbate the problems faced by the industry. The shift towards remote work has also resulted in high office vacancy rates in cities like London.

However, Europe presents a unique opportunity for transformation. Over $4.5bn has been invested in green construction technology between 2017 and 2022, with European regulations and standards leading the way in renewable energy and sustainability. European universities are conducting groundbreaking research that can drive the development of a global climate tech industry.

Climate tech has already attracted significant investment, receiving $65bn in venture capital funding globally last year. To achieve real change, traditional industries such as steel and cement must also undergo transformation. Innovations are being seen throughout the entire lifecycle of the built world, from the supply chain to construction techniques and building operations.

It is crucial that we recognize the urgency of the situation and not rely on distant deadlines like 2050. Investors play a critical role in directing capital towards industries that can drive change. Time is running out, and without focused action, we risk falling behind.