Reducing emissions through buildings, not veggie burgers

author: FutureCar Staff    

The key to reducing our emissions and tackling climate change lies in prioritizing the transformation of our buildings, rather than focusing on meatless burgers and other distractions, according to Gregory Dewerpe. Despite eight years of efforts to reduce emissions, temperatures continue to rise and extreme weather events, such as wildfires and flooding, are becoming more frequent. To make a real impact, we need to shift our attention and resources to the built world, which is the most carbon-emitting sector.

The real estate industry, valued at $330 trillion, is the largest industry in the world. However, it is also the least digitized and most polluting asset class. Concrete alone accounts for 8% of global greenhouse emissions, and the construction and demolition of buildings contribute to a third of solid waste in Europe and North America. Additionally, 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 urbanization.

Furthermore, the economic challenges we currently face, such as rising interest rates and inflation, exacerbate the problems of the built world. The shift to remote work has also impacted cities like London, where office vacancies are at 14%. However, there is hope in Europe, where over $4.5 billion has been invested in green construction technology between 2017 and 2022. European regulations and standards in renewable energy and sustainability are leading the way, and the research conducted at European universities can establish a climate tech industry that benefits the entire world.

Climate tech, which received a record $65 billion of venture capital funding globally last year, will play a crucial role in transforming traditional industries like steel and cement. Innovations are being developed throughout 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 opportunities for decarbonization and increased efficiency.

However, we must also acknowledge that time is running out and we cannot afford to be complacent. The deadline of 2050 may seem distant, but it creates a false sense of security and delays real change. Investors have a crucial role to play in directing capital towards industries that can drive meaningful change. Without focused action, we risk missing the opportunity to make a difference.

FutureCar Staff