The building value chain is accountable for 37% of total carbon emissions globally, encompassing numerous harder-to-abate sectors and necessitating an immediate acceleration of the green transition.
A joint report by the World Economic Forum and Boston Consulting Group reveals that the green transition in the building sector could unlock $1.8 trillion in global market opportunities, alongside significant social and environmental benefits. However, to fully capitalize on these opportunities, stakeholders across the value chain must adopt a strategic and collaborative approach, focusing on standard setting, flagship development, policy design, and innovation.
Buildings, constructed to meet humanity’s needs, shape and are shaped by nature. As heatwaves rage from North America to Asia, with 2024 projected to be the hottest year on record, it is crucial to view buildings as a means to both reduce emissions and adapt to a changing climate.
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The building sector’s value chain includes industrial sectors like steel and cement, making decarbonization particularly challenging. Addressing the critical priorities in the fight against climate change, the building sector demands immediate attention.
Pursuing the green transition in the building sector can unlock substantial opportunities and drive sustainable growth. The industry is already evolving, adopting new development models that align with global trends and the growing demand for sustainable practices.
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This transition is more than a response to market fluctuations; it is a strategic move for value chain players, including developers, constructors, and material providers, aiming for long-term value creation.
The most immediate area of impact is in the design and construction of buildings. The materials used, their origins, and their implementation in the built environment are crucial. By adopting greener practices and materials, the building sector can significantly reduce its carbon footprint and contribute to global sustainability goals.