Reducing emissions through buildings, not meatless burgers

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【Summary】Meatless burgers won't significantly reduce emissions. Instead, the focus should be on transforming the built world, which is responsible for a large portion of carbon emissions. Real estate is the world's largest industry and the most polluting, with concrete alone accounting for 8% of global emissions. Without action, emissions from the built world are set to double by 2050. European regulations and investments in green construction tech provide an advantage for transformation.

FutureCar Staff Aug 18, 2023 8:23 AM PT

Reducing emissions through buildings, not meatless burgers

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

While investments have poured into alternatives like meatless burgers, alternative milks, paper straws, and e-scooters, global temperatures continue to reach record highs. Recent extreme weather events, such as wildfires in Europe and flooding in Pakistan and Canada, highlight the urgency of addressing climate change. Focusing on making everyone vegetarian will not be effective or timely enough. We need to shift our priorities to sectors that have a greater impact.

The built world, encompassing our homes, workplaces, stores, and infrastructure, is the largest carbon-emitting sector and requires urgent transformation. With a market value of $330 trillion, real estate is both the least digitized and most polluting asset class. Concrete alone accounts for up to 8% of global greenhouse emissions, while one-third of solid waste in Europe and North America comes from construction and demolition. Overall, 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. Economic challenges, such as rising interest rates and inflation, further exacerbate the problems faced by the built world. The shift towards remote work has also led to high office vacancy rates in cities like London.

Europe, however, has a unique advantage in addressing these challenges. The region has attracted over $4.5 billion in green construction tech investments between 2017 and 2022, with more than half of these deals taking place in Europe. European regulations on renewable energy, building standards, and sustainability are considered world-leading. The research conducted at European universities can pave the way for a global climate tech industry.

Climate tech has shown resilience in the face of broader economic trends, attracting a record $65 billion in venture capital funding worldwide last year. This sector will play a crucial role in transforming traditional industries, such as steel and cement, which currently account for 20% of global GDP.

Innovations are being seen throughout the entire lifecycle of the built world, from supply chain improvements 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.

It is essential to realize that time is not a luxury we possess. Setting a deadline as far as 2050 can lead to 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 drive change. Without focused action, we risk running out of time.