14 November 2024
The building & real estate sector significantly contributes to global greenhouse gas emissions, accounting for 34% of global final energy use. Given its substantial impact, reducing its carbon footprint is essential to achieving the climate goals of the Paris Agreement and keeping global warming below 1.5°C. (IEA, 2023)
Why is it essential to decarbonise the building sector?
New buildings generally incorporate advanced energy-efficient technologies. However, around 80% of the current building stock will still be in use in 2050 (WEF, 2022), which means that decarbonising existing buildings is crucial. Renovating and improving the energy efficiency of these existing buildings offers an alternative to constructing new buildings, reducing the carbon footprint associated with building materials and processes.
In addition, the building sector also generates fugitive emissions, particularly through leakages in cooling systems. Reducing these emissions is essential to reach net zero.
By incorporating circularity principles into building design, carbon emissions from materials could be reduced by 38% by 2050, underlining the importance of designing sustainable buildings today. (Ellen Macarthur Foundation, 2020)
Decarbonisation scenarios in the building sector
To reduce the sector’s emissions, two main types of decarbonisation scenarios are considered.
The primary challenge lies in balancing the need to reduce operational energy emissions—through improved insulation, advanced materials, and technologies—with the fact that these same materials often increase embodied carbon, which also needs to reduce. The choice of materials is then a key element in this trajectory.
1. Reducing operational emissions
Operational emissions come from the energy used to run buildings, in particular for heating, cooling, lighting and powering equipment. These emissions can be reduced by improving energy efficiency, using renewable energies and optimising energy management systems.
2. Reducing embodied carbon
Embodied carbon refers to emissions generated throughout the life cycle of construction materials, from production to end-of-life treatment. This type of emission is particularly important, as it accounts for a substantial proportion of the overall carbon footprint of buildings.
Legislative and regulatory framework
Regulations play a decisive role in accelerating the decarbonisation of the building sector. In Europe, several directives impose strict standards for energy efficiency and sustainability in the building sector, including the European Green Deal and the Energy Performance of Buildings Directive (EPBD). These regulations encourage the renovation of buildings and the reduction of operational emissions by setting minimum standards for the energy performance of new and existing buildings.
Other initiatives, such as the Corporate Sustainability Reporting Directive (CSRD), require companies to report their GHG emissions and demonstrate their efforts to reduce them. This regulatory framework encourages industry players to adopt low-carbon construction practices and improve transparency on their environmental impacts. The EU Taxonomy also supports more transparency in terms of green investments, which will help investors and financial institutions to channel their investment towards climate-friendly building investments. This supports the European Union’s climate neutrality objectives and contributes to the creation of a more sustainable built environment.
Decarbonising the building sector represents a major challenge, but also an opportunity to reduce global greenhouse gas emissions. By improving energy efficiency, integrating sustainable materials and meeting legislative requirements, construction companies can play a key role in the transition to a low-carbon economy. Industry commitment, supported by science-based targets and a robust regulatory framework, is essential to create sustainable cities and infrastructure for future generations.
Climate risks for the building sector
The world is currently 1.2°C warmer than pre-industrial levels (WMO, 2024). Despite strengthened mitigation efforts – the EU has reduced net emissions by 37% compared to 1990 levels (EU, 2024) – even the most optimistic scenarios project at least 1.5°C of warming by 2030 globally (NGFS, 2024). Belgium is not spared from climate change and is warming faster than the global average.
As temperatures rise, extreme weather events such as heatwaves, heavy rainfall, and flooding are becoming more frequent and intense. The building sector is particularly vulnerable to these risks, including flooding, drought, and subsidence, while also contributing to their exacerbation through urbanization.
Beyond physical risks, climate change presents both challenges and opportunities linked to the transition to a low-carbon economy. In line with the EU Green Deal, Belgium aims for net-zero emissions by 2050, requiring significant reductions across all sectors, including buildings. This transition poses challenges like regulatory changes and investment needs, but also offers opportunities for energy-efficient and sustainable construction, which can mitigate climate risks and drive growth.
Source:
Science Based Targets initiative. (n.d.). Buildings sector: Science-based target setting guidance. https://sciencebasedtargets.org/resources/files/SBTi-Buildings-Sector-Explanatory-Document.pdf
European Commission (EU, 2024). EU climate action progress report 2024. Retrieved from https://climate.ec.europa.eu/document/download/d0671350-37f2-4bc4-88e8-088d0508fb03_en
Network for Greening the Financial System (NGFS, 2024). NGFS long-term scenarios for central banks and supervisors. Retrieved from https://www.ngfs.net/sites/default/files/medias/documents/ngfs_scenarios_main_presentation.pdf
World Meteorological Organization (WMO, 2024). State of the Global Climate 2023. Retrieved from https://library.wmo.int/viewer/68835/download?file=1347_Global-statement-2023_en.pdf&type=pdf&navigator=1