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 the emphasis on ditching plastic, meat, and cars over the past eight years, these measures have not made a significant impact on emissions. The focus on alternative food products and eco-friendly measures has not prevented record-high temperatures and extreme weather events, such as wildfires and flooding. Instead, we need to prioritize transforming the built world, which is the most carbon-emitting sector.

The real estate industry, valued at $330tn, 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 waste accounts for a third of solid waste in Europe and North America. The built world industry as a whole 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 urbanization.

In addition to its environmental impact, the built world faces economic challenges such as rising interest rates, inflation, and the shift towards remote work. Cities like London are experiencing high office vacancy rates as a result. However, Europe has an advantage in terms of green construction technology, with over $4.5bn invested in this sector between 2017 and 2022. European regulations and sustainability standards are leading the way, and the research conducted at European universities can contribute to a global climate tech industry.

Climate tech has proven to be a promising sector, attracting a record $65bn in venture capital funding last year. It is essential for this industry to transform traditional sectors like steel and cement, which currently account for 20% of global GDP. Innovations are being seen across 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 offers an opportunity for decarbonization and increased efficiency.

However, we must not underestimate the urgency of the situation. The 2050 deadline creates a sense of complacency and delays the implementation of real change. Investors play a crucial role in directing capital towards industries that can drive change. Time is running out, and without focused action, we risk running out of time to address the climate crisis.

FutureCar Staff