Resources sourced by: Iliana Griva (MBA ‘26)

Date sourced: September ‘24

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The building industry is responsible for 38%, or around 14 gigatons, of all energy-related GHG emissions each year. According to the latest IPCC report, the industry needs to reduce these emissions by 50% by 2030 if it is to reach net zero by mid-century and achieve the climate goals of the Paris Agreement. The built environment is not on track to achieve these reductions, with emissions growing at an average of 1% per year since 2015. This combined with the long lifespan of buildings risks “locking in” vulnerable and high emission infrastructure.

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• Key Principles:
• Industry experts often refer to the split between operational and embodied emissions. Operational emissions encompass the emissions from the use of buildings throughout their useful life (mainly from energy use). Embodied emissions refer to carbon dioxide associated with the use of materials (and energy upstream) to develop a building. Embodied emissions are further divided into “upfront” and “in-use”, i.e., emissions at the stage of development v. emissions from renovation, refurbishment, etc.
• Although at this stage operational emissions account for a significant part of overall sector emissions, as grids decarbonize, the share of embodied emissions will rise.
• A critical issue is the overall global floor area growth (meaning: how many sqm/sqft are build). It is understood among experts that achieving a net zero trajectory entails reducing development activity in the Global North (and engaging in more efficient use of space) to allow for growing development activity in the Global South.

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Key People

The built environment is a complex ecosystem with many stakeholders driving change (often locally). Any experts within the organizations above, as well as major climate and real estate service providers (e.g., RMI, CBRE), as well as real estate investors, developers, and policymakers all have a critical role to play.

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Key Organizations

GlobalABC

ULI

WBCSD

World Green Building Council

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Resources

• 📲 Key Resources

• ARUP, Net zero buildings: Where do we stand?

• IEA, Breakthrough Agenda - Buildings

• GlobalABC, Global Status Report for Buildings & Construction

• 🎙️Podcasts / Videos

• Redefining Energy, Decarbonising Buildings

• Shaping Sustainable Places (multiple episodes)

• Other resources

• McKinsey, Building Value by Decarbonizing the Built Environment