Khaled Bushnaq

The 2030 deadline of the Paris Agreement is fast approaching. We have a mere five years to achieve the critical target of limiting global warming to 1.5°C and slashing our emissions by roughly 50 per cent.

Yet, the buildings and construction sector – one of the largest emitters of greenhouse gases (GHG) responsible for 34 per cent of global energy demand and 37 per cent of global emissions – is falling short of the necessary trajectory. The sector is currently not on track to halve emissions by 2030 or reach net zero by 2050. This lag presents a serious challenge to achieving global climate goals as the gap between the current state and the desired decarbonisation path widens.

The latest Global Status Report for Buildings and Construction reveals a concerning trend: the sector’s energy intensity is 11 per cent above the required target to get back on track, and the $285bn investments in 2022 to decarbonise the built environment also fell short of targets, falling further in 2023. In addition, the increasing frequency and intensity of extreme weather events are causing costly delays and disruptions to construction projects worldwide.

Despite these setbacks, the building and construction sector still holds immense potential for climate action. Bringing about a fundamental shift in the sector offers a crucial opportunity to achieve substantial and sustained emissions reductions. Bold action is now paramount to meet the ambitious Buildings Breakthrough target set at COP28 in the UAE last year and establish near-zero emissions and resilient buildings as the new normal by 2030.

Reimagining the buildings of the future and making them climate-friendly by prioritising sustainable materials, renewable energy integration, low-carbon construction practices, and circular economy principles are essential for achieving carbon reduction targets and ensuring the long-term viability of the asset’s financial and operational health. This presents a significant investment opportunity as green construction can spur economic growth, promote a low-carbon economy, and create skilled jobs.

With 68 per cent of the world’s population projected to live in urban areas by 2050 and as half of the buildings required to support this urbanisation have not yet been built, a substantial low-carbon investment opportunity emerges, particularly in emerging markets. This represents an estimated $24.7tn market by 2030, with a $1.1tn share in the Middle East and North Africa, a region experiencing increasing demand for resilient housing.

A multi-pronged approach is crucial to align with the 1.5°C pathway. This includes an urgent need to shift lending and investments towards near-zero emissions and resilient buildings.

The New Collective Quantified Goal (NCQG), adopted at COP29 in Baku, Azerbaijan, will address persistent gaps in climate finance in developing countries and accelerate the mitigation and adaptation potential of our built environments through a more realistic and ambitious financial framework.

To deliver on its climate commitments, the construction sector requires strengthened policy and regulatory frameworks that incentivise and enable private sector investment to scale existing climate solutions. More ambitious Nationally Determined Contributions (NDCs) and a firm commitment to international initiatives like the Buildings Breakthrough are essential for making clean technologies and sustainable solutions accessible and affordable, accelerating the global transition to a net-zero built environment. Governments can further contribute by developing and enforcing climate action roadmaps for buildings and construction, ensuring building energy codes align with zero-emissions building (ZEB) principles.

Aiming for a net zero life cycle in buildings through improved energy planning and system integration, along with the incorporation of passive design principles in all new construction, can enhance energy efficiency and significantly reduce reliance on mechanical heating and cooling systems. Retrofitting existing buildings through better insulation and smart building systems can further accelerate the sector’s decarbonisation.

The industry can also adopt a more circular approach to construction by minimising material use, reusing building components, and transitioning to renewable, sustainably sourced bio-based building elements and solutions such as green roofs, rainwater harvesting, and stormwater management. Reducing the carbon footprint of conventional materials is also crucial for minimising the embodied carbon in buildings.

Buildings are the foundation of urban cities and transforming them into sustainable, inclusive, and resilient structures is crucial for creating thriving, equitable communities and meeting the urgent demands of a rapidly urbanising world.