Real estate sector, far from achieving decarbonization by 2050; pollutant emissions from buildings are increasing

The climate change It is one of the global emergencies that requires coordinated solutions at all levels and international cooperation for countries to move towards a low carbon economy.

To address the negative impacts of this phenomenon, world leaders have agreed on strategies in the Paris Agreementone of them, achieving long-term emissions reductions, also known as mid-century strategies or “Decarbonisation Plans 2050”.

However the real estateone of the most polluting globally, is far from said objective, according to the Report on the world situation of buildings and construction in 2022 of the United Nations Environment Program (UN).

According to the study, the energy demand of buildings increased about 4% from 2020 to 135 EJ (exajoules), the largest increase in the last 10 years.

In addition, the carbon dioxide emissions (CO2) from real estate operations have reached a all-time high of around 10 GtCO2 (gigatonnes of CO2), that is, 5% increase from 2020 and 2% higher than the previous peak in 2019.

“The Building and construction sector is not on track to achieve decarbonization by 2050. And there is an ever-widening gap between the observed performance and the desirable course”, the document explains.

More green investment

Despite the results, the main trends in the report indicate that, since 2015, there has been progress in terms of policies and investments in the decarbonization of the real estate sector.

In 2021, there was a 16% increase in global investment in energy efficiency, a figure that exceeds 230,000 million US dollars. This spending occurred mainly in countries such as Germany, the United Kingdom, Italy, the United States, Canada, and Japan.

On the other hand, the reactivation of construction activities generated an increase in the construction of buildings with ecological or sustainability certifications. According to estimates, the inventory of buildings with this kind of recognition grew 19%, compared to 2020.

“This increase in investment is good news, but it also underscores the difficulty of continuing with energy efficiency projects in a period of inflation that will exert greater pressure on the costs of the loans”, reads the document.

Threats to the sector

As 2022 progressed, threats to the path of real estate decarbonization were observed due to the war between Russia and Ukraineand the subsequent energy crisis in Europe.

After the Covid-19 pandemic, other risks determined by the world price volatilitythe cost of living crisis facing countries and the impact of rising interest rates on investment in buildings by governments, households and businesses.

“There needs to be a political and organizational leadership strong that gives priority to taking measures that contribute to the transition towards decarbonisation and sustainability of the built environment and the transformation of the production of construction materials”, the report concluded.