A new World Economic Forum report released today outlines a roadmap for transforming the global building sector to combat climate change and protect biodiversity. Amid rapid urbanization worldwide, primarily driven by emerging economies, the report presents a timely case for the decarbonization of the sector, showing how it could generate significant economic gains for early adopters and a positive environmental impact for all.

‘Towards Green Building Value Chains: China and Beyond’, published in collaboration with Boston Consulting Group (BCG), identifies 11 strategic transition levers across the entire value chain of buildings. These levers, when combined, could unlock over 80% of the sector’s abatement potential and open a $1.8 trillion market opportunity, as per the new research.

“The new frontier of growth and competitiveness for players in the building sector will be to develop materials, design construction methods and achieve operational outcomes that are net-zero carbon, nature positive and resilient to extreme weather shocks while promoting community well-being and people-to-people connections,” said Gim Huay Neo, Managing Director at World Economic Forum.

According to a recent UN report, buildings are responsible for 37% of global carbon dioxide (CO2) emissions, and 34% of the Earth’s species are enduring habitat loss as a result of urban development, Nature has published. With rapid urbanization, especially in emerging economies, expected to continue over the next decades, the report calls for a comprehensive and holistic approach to the green transition throughout the global value chain of the construction sector and the entire life cycle of buildings, including construction, use and end of life.

The report identifies four characteristics of a holistic vision for green buildings:

• Net zero – minimizing whole-life emissions through innovative materials and technologies
• Nature positive – enhancing buildings’ environmental performance by integrating natural elements
• Resilient – maximizing buildings’ ability to withstand extreme weather and climate volatility
• Well-being oriented – boosting the physical and mental well-being of their occupants, enhancing community development and ensuring access for all

“The sheer complexity of the building value chain requires upstream and downstream players to work together on enabling actions such as standard alignment and technology breakthrough,” said Yvonne Zhou, Managing Director and Senior Partner at BCG. “Only through this collaboration will the 11 levers be fully unlocked.”

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Source: World Economic Forum