Guidance to Minimize the Built World's Role in Greenhouse Gas Emissions

Guidance to Minimize the Built World's Role in Greenhouse Gas Emissions

The world's carbon dioxide emissions from energy rose in 2023, with more than a third (37%) of these emissions coming from the built world sector. This underscores the urgent need to decarbonise this sector to meet global climate targets.

Catriona Hyland, research analyst at A/O, recently emphasised that one of the most pressing challenges in decarbonizing the built world is overcoming entrenched market precedents that currently hinder the shift to low-carbon urban logistics and infrastructure.

Hyland's approach to addressing this issue focuses on breaking these market precedents through new investment strategies and technologies that accelerate the deployment of climate-friendly assets in the built environment. This involves:

1. Emphasizing climate solutions-as-a-service models to enable faster and more scalable asset deployment with reduced upfront costs and risks.
2. Supporting cross-sector collaboration to bring together industry partners, startups, and investors to facilitate innovation and adoption.
3. Investing in circularity technologies and materials to reduce embedded carbon in buildings and infrastructure.
4. Addressing financing challenges for scaling climate tech in real estate and urban logistics by leveraging philanthropy and impact investing frameworks.

These strategies aim to transform the market, create supportive investment ecosystems, and foster innovative financing as keys to accelerating decarbonization in the built environment.

In the UK, the installation of heat pumps in 2022 was only 55,000, falling short of the government's target of 600,000 per year over the next four years. Industrial heat pumps and electrical heating solutions target lower temperature energy consumption in the industrial sector, which could help reduce carbon emissions significantly.

Emerging thermal storage solutions can make use of green energy for high-temperature applications in industries, further aiding the transition to renewable energy. However, creating better energy storage, and smarter trading and grid tech solutions are also crucial for this transition.

The energy transition requires the workforce involved in the retrofitting and climate tech sector to quadruple by 2030. There is an urgent need for plumbers, welders, joiners, fitters, electrical engineers, and surveyors to upskill.

Banks play a crucial role in financing the built environment and can drive the energy transition by partnering with installers, solution providers, and utilities. Leaning on technology for retrofitting buildings, promoting smart meter usage, and expanding access to renewable energy can lead to significant societal gains.

Long-term changes across political parties are needed to accelerate the decarbonisation of the built world and maximise the value of public and private investment. Investing in energy-efficient housing can have substantial societal impacts, including fueling economic growth and improving accessibility for low-income communities.

Generative AI and automation can optimise design, improve efficiency, and reduce errors in construction. Industrial heat generation contributes significantly to carbon emissions, and mandating electrification of industrial processes could be a solution.

In conclusion, the decarbonisation of the built world is a complex challenge that requires the cooperation of governments, solution providers, and property developers. By focusing on market transformation, supportive investment ecosystems, and innovative financing, we can accelerate the transition to a low-carbon built environment.

[1] Catriona Hyland, A/O Research Analyst, "Decarbonizing the Built World: Overcoming Market Barriers," [Event Name], [Date], [Location]. [2] "Decarbonizing the Built World: A Call to Action," [Report Name], [Publishing Date], [Publisher].

1. Catriona Hyland's approach to decarbonizing the built world emphasizes climate solutions-as-a-service models, cross-sector collaboration, investing in circularity technologies, and addressing financing challenges to accelerate the deployment of climate-friendly assets.
2. The installation of heat pumps in the UK fell short of the government's target in 2022, highlighting the need to invest in industrial heat pumps and electrical heating solutions to reduce carbon emissions significantly.
3. Emerging thermal storage solutions can make use of green energy for high-temperature applications in industries, but creating better energy storage, and smarter trading and grid tech solutions are also crucial for the transition to renewable energy.
4. The energy transition requires the workforce involved in the retrofitting and climate tech sector to quadruple by 2030, with an urgent need for plumbers, welders, joiners, fitters, electrical engineers, and surveyors to upskill.
5. Banks play a crucial role in financing the built environment and can drive the energy transition by partnering with installers, solution providers, and utilities, leveraging technology for retrofitting buildings, promoting smart meter usage, and expanding access to renewable energy.

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