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Climate Change – How much is Building Construction CO2 Emission Contributing?

Posted on: 08-03-2024

Climate Change – How much is Building Construction CO2 Emission Contributing?

Climate change, the defining challenge of our time, casts an ominous shadow over the future of our planet. The planet's climate is changing at a rapid pace primarily due to the human activities, such as burning of fossil fuels and deforestation. The consequences of these actions are already visible: rising global temperatures, melting ice caps, extreme weather events, and disrupted ecosystems.

One of the most alarming aspects of climate change is the rise in global temperatures. Earth's average temperature has increased, leading to more frequent and intense heatwaves. This warming trend contributes to the rapid melting of glaciers and polar ice caps, causing rise in sea levels. Coastal communities are under threat, with the potential for widespread displacement of populations and loss of valuable habitats.

Carbon dioxide CO2 emissions play a pivotal role in the ongoing climate change crisis. As a greenhouse gas, CO2 traps heat in the Earth's atmosphere, thereby leading to a warming effect commonly known as global warming. The main sources of CO2 emissions are human activities, mainly through burning fossil fuels (such as coal, oil, and natural gas) for energy, industrial processes, transportation, and deforestation.

The excessive and escalating levels of CO2 emissions have contributed significantly to the Earth's changing climate patterns. Addressing to the CO2 emissions is a key focus of international efforts to mitigate climate change. Countries worldwide are investing in renewable energy sources and adopting sustainable practices to reduce their carbon footprints. Nations, industries, and individuals must work together to reduce CO2 emissions, transitioning towards a cleaner, greener, and more sustainable world.

Notably, the building construction industry is a significant contributor to climate change, accounting for 21% of global greenhouse gas (GHG) emissions. These emissions have reached record levels in recent years. This implies the need to control building construction emissions to fight climate change. While operational emissions can be gradually reduced through efficient energy use, tackling embodied emissions remains a formidable challenge, given that they are locked during the construction. Achieving net zero emissions by 2050 demands a relentless focus on thoughtful initial design and the choice of environmentally friendly construction materials and products in the building construction industry.

The global building construction market is on track to reach USD10.4 trillion by 2030, driven by increased government investments in residential development and innovative construction materials for cost reduction and enhanced efficiency. This growth surge has ignited a growing concern for climate action among consumers, occupants, and investors, prompting building construction companies to rigorously review their ESG (Environmental, Social, and governance) performance to stay afloat and thrive in this changing landscape.

Fortunately, building construction companies worldwide are increasingly recognizing the importance of reducing their carbon dioxide CO2 emissions to mitigate climate change. Here are several ways in which these companies are actively working to minimize their environmental impact:

1. Sustainable Material Selection: 

  1. Opting for low-carbon and recycled materials in construction, such as eco-friendly concrete and reclaimed wood, significantly reduces CO2 emissions associated with construction 
  2. Choosing materials sourced locally to reduce transportation-related emissions

2. Energy-Efficient Designs: 

  1. Implementing energy-efficient building designs, such as proper insulation, smart windows, and efficient HVAC systems, reduces the need for heating, cooling, and lighting, thereby lowering energy consumption 
  2. Incorporating passive design strategies that utilize natural light and ventilation, further reducing the reliance on artificial lighting and mechanical ventilation systems 

3. Renewable Energy Integration: 

  1. Installing renewable energy systems, including solar panels and wind turbines, generates clean electricity, thereby reducing dependence on fossil fuels 
  2. Implementing energy storage solutions to harness excess energy for later use, ensuring a consistent renewable energy supply 

4. Green Certifications and Standards: 

  1. Pursuing green building certifications, including Leadership in Energy and Environmental Design (LEED) or Building Research Establishment Environmental Assessment Method (BREEAM) that promote sustainable construction practices 
  2. Adhering to local and international environmental standards to ensure compliance with regulations related to energy efficiency and reduction in the CO2 emissions 

5. Efficient Construction Practices: 

  1. Implementing lean construction methods to minimize waste and optimize resource usage, thereby reducing the overall carbon footprint of construction projects 
  2. Utilizing advanced construction technologies, such as 3D printing and modular construction, to streamline processes and minimize material waste 

6. Building Lifecycle Analysis: 

  1. Conducting lifecycle assessments of buildings to ascertain the impact of construction-related materials on the environment, thereby enabling companies to identify areas of improvement 
  2. Investing in durable materials and designs that require fewer replacements and repairs over the building's lifetime, thus reducing overall emissions 

7. Green Transportation and Supply Chain Management: 

  1. Encouraging the use of electric vehicles within the company's fleet and promoting eco-friendly commuting options for employees to reduce transportation-related emissions 
  2. Collaborating with suppliers and subcontractors who follow sustainable practices and have environmentally responsible supply chains 

8. Carbon Offsetting and Environmental Initiatives: 

  1. Investing in carbon offset projects, like reforestation or renewable energy initiatives, balances out unavoidable emissions from construction activities 
  2. Engaging in environmental conservation efforts, community tree planting, and other initiatives that contribute positively to the environment and offset the company's carbon footprint 

By adopting these strategies and continually innovating, building construction companies are making significant strides towards reducing their CO2 emissions and contributing to a more sustainable future.

We believe that there is powerful, untapped knowledge out there that can transform the way institutional investors embrace a more conscious allocation to sustainable investments. There are a number of problems, though. It's often inaccessible, overlooked, or trapped in people's heads - creators, builders, innovators, the dreamers that do and the rebels of invention who rarely have time to share their views.

FA Fin Advisors (www.fin-advisors.com) and its team aim to inspire thinking and just maybe, just maybe, play a role in mobilizing capital to create a reimagined, purposeful and more livable world. We can't wait to see what happens next.


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