The case for decarbonising the built sector

The built sector contributes between 45 to 75 per cent of global greenhouse gas emissions of which construction plays a huge part. A new report published by McKinsey & Company and the World Economic Forum suggests that the construction sector’s carbon dioxide emissions – from building to real estate to infrastructure – can be reduced by up to 75 per cent by 2050 through the establishment of a circular economy.

This means the built sector will be able to shed upto 4 gigatons of carbon dioxide in the next three decades through efficient and sustainable operations and business models.

The report notes that circularity will create substantial economic advantages, with the potential to yield an annual net profit gain of up to $46bn by 2030 and $360bn by 2050. To talk about the challenges and opportunities that decarbonisation presents to the global built environment, Gulf Business spoke to Rodrigo Fernandes, director of ES(D)G, Bentley Systems. Here are excerpts from the conversation:

Q: Why were you at COP28?

Our presence at COP is pivotal as Bentley Systems specialises in creating software solutions for infrastructure design, construction, and operation. With infrastructure contributing to 79 per cent of global greenhouse gas emissions, there’s a profound responsibility on professionals to decarbonise and climate-proof infrastructure. Our focus here is to leverage our technology to expedite this process. We aim to support a clean energy transition in three key areas: enhancing production, optimising delivery, and promoting energy efficiency.

Additionally, we see technology as a catalyst for enabling climate adaptation, especially concerning water-related challenges. Our belief is that by emphasising infrastructure intelligence and data-centric approaches, particularly through digital twins, we can significantly enhance how we design, build, and operate infrastructure.

Moreover, COP represents the value of partnerships and collaboration, which aligns with our ethos. Part of my role here is to foster more collaborative opportunities and incentivise partnerships. We see collaboration as integral to achieving the milestones required to address the pressing challenges we face.

Q: From Bentley’s perspective, was there noticeable progress from previous COPs in terms of decarbonisation? Also, do you foresee changes in the future at a macro level?

This was my third COP, and one notable shift is the increased private sector presence. Driving towards net zero requires the involvement of the private sector, especially as they bring essential technologies and tools to facilitate the process. At events like these, where delegates engage in negotiations, showcasing available technologies in this microcosm is crucial. It allows them to witness what’s possible and what can be leveraged.

Similarly, the finance sector’s engagement is pivotal, considering the vast funding required for net zero initiatives. While there’s talk about the significant capital relocation, there’s still a substantial investment gap, a topic discussed consistently. The finance sector’s involvement and commitment are noticeably growing.

There’s a transformative aspect to this increased awareness. People within Bentley and across organisations are displaying heightened interest in sustainability. They actively seek involvement in events like COP, not just to contribute but also to learn. It’s a platform for partnerships, advocacy, and learning from others. Expanding this ecosystem is crucial, although the progress might not match the urgency required. Yet, from Bentley’s perspective, our contribution lies in technology. We’re committed to supporting and offering our technological expertise to drive change.

Q: You’re active in the built environment, where the percentage often cited for GHG contribution ranges around 45 to 50 per cent. Given the diverse history and mix of ancient and modern structures, is aiming for net zero realistic?

Indeed, that’s a complex issue. Achieving net zero or meeting science-based targets, such as those in the Paris Agreement, requires embracing sustainability principles, which poses conceptual challenges. Efficiency is only part of the solution; circularity is equally vital. It involves perpetuating components of infrastructure, allowing their reuse in various projects over decades, thus promoting a never-ending cycle. The challenge lies in radically redefining our approach to utilise the Earth’s resources in a circular manner.

Moreover, decarbonising hardware in sectors like cement and steel presents challenges, and while disruptive technologies are being explored, they’re not universally available yet. Investment in these innovative solutions is crucial. Our historical achievements demonstrate human ingenuity, and now, we face a critical challenge, requiring the application of collective knowledge to accelerate progress.

While I believe in our ability to achieve these targets, it’s essential not to be overwhelmed by the enormity of the task. Focusing on investing in disruptive technology for the future should not overshadow what we can implement today. Quick wins involve optimising efficiency, embracing circularity in material processing, and leveraging technology, AI, and data to meet these goals. It’s a daunting task, but achievable without losing sight of immediate actions.

Q: You’ve highlighted the necessity for public-private collaboration, especially considering diverse legislative environments where Bentley operates. How does Bentley navigate these differing green strategies, notably between the US and the EU?

Our technology solutions vary in specificity. Some are tailored for sectors like water, focusing on anomaly detection in pipelines or optimising pumping efficiency. However, several technologies are more generic, applicable across project delivery and construction. We believe our technology supports multiple strategies. For example, in France, where there’s advocacy for nuclear energy, our software aids in enhancing asset reliability in nuclear power plants. Conversely, in Germany, where nuclear energy isn’t favored and offshore wind platforms take priority, our technology assists in implementing offshore wind platforms.

As enablers, our goal isn’t to enforce a particular path but to aid transitions across different energy strategies. Our agnostic approach prioritises achieving the goal over the specific route taken. To adapt to these diverse environments, we actively engage in government relations to comprehend priorities. It’s a challenging aspect for a global company like Bentley, yet our role is to support these various environments as part of our mission.

Q: Could you detail Bentley’s involvement in the GCC and which sustainable technologies have gained traction in this region? 

We’ve observed significant strides in the water sector’s digital transformation towards sustainability. Engineering firms collaborating on diverse projects in the Middle East are crucial to our business and essential for infrastructure projects due to their openness to various technologies.

Additionally, industries focused on efficiency improvements have piqued our interest. Smart Cities are a compelling area here, with several cities aspiring to be the epitome of a smart city. Managing cities as holistic, interconnected systems is vital for smart and sustainable urban development. These cities are pioneering advancements in this area, integrating IoT and data for real-time management, particularly in emergencies such as burst pipes impacting various city sections.

This focus on digitalisation, interconnectivity, and real-time management showcases advancements in smart city initiatives, especially in the Middle East, and their potential impact on urban resilience and sustainability.

Q: What were your personal takeaways?

Reflecting on COP28, on a personal note, it feels a bit early to draw comprehensive conclusions. We’ve seen positive actions like funds for climate damage and notable legislations addressing methane emissions in the US, although exact figures escape me. Yet, it appears to be a significant step, though more is needed. From a Bentley perspective, the key takeaway is the recognition of a prevailing lack of awareness on how digital transformation aligns with sustainable goals.

Bridging this gap between chief sustainable officers and digital officers, integrating tools like digital twins for carbon analysis and leveraging technology for sustainability acceleration, is pivotal. Our aim is to advocate this integration and foster partnerships within the ecosystem for a more impactful involvement in future COPs.

It’s been a pleasure discussing this, thank you.

Also read: A case study from Helsinki: Seeking sustainable solutions using digital twins