Introduction
Today, the Science Based Targets initiative launched a new decarbonization framework that targets companies and financial institutions in the buildings sector to consistency with the 1.5°C climate target, in line with the goal of averting most of the worst-case global warming impacts. Targeting net-zero through both current and future lenses, the new framework comprises comprehensive criteria called the Buildings Sector Science-Based Target-Setting Criteria.
The Building Sector and Its Environment
The buildings sector rightly can be considered a very critical focus area for climate action, accounting for more than a quarter of all energy-related emissions globally. The business operations of the sector are also increasingly being affected by climate change through the increased incidence of extreme weather events, which have caused substantial economic disruption-such as construction delays projected to cost billions of dollars annually around the world. With demand for buildings continuing to increase, especially in developing regions, the sector’s environmental footprint will balloon unless bold action is taken forward.
Essential Decarbonization Activities
Organizations and financial institutions in the buildings sector are encouraged to take several key activities to help lead the path toward net-zero with the updated SBTi standards. Activities are intended to displace fossil fuels, reduce in-use and embodied emissions, and retrofit existing buildings for energy efficiency.
1. Stop Installing Fossil Fuels
Among the essential recommendations of the SBTi are pledges to cease installation of the fossil fuel system from 2030 onward. Systems applied for heating, cooking, power generation, and hot water are part of this. Fossil fuel phasing out is one of the key drivers of sectoral steps toward much lower reliance on carbon-intensive energy sources and transitions toward renewable alternatives.
2. In-Use Emissions Reduction
This framework stresses that GHG emissions from a building’s operational stage energy consumption must be reduced. Alongside the Carbon Risk Real Estate Monitor’s initiative, SBTi has worked out regional pathways for companies to do so by factoring in conditions surrounding local power grids and patterns of use, hence giving more focused instructions on how to cut in-use emissions in respective regions.
3. Reduce Embodied Emissions
Another strong focus of the SBTi framework is on embodied emissions, which are associated with production, transportation, and construction processes incorporating the building material. For such areas, reduction targets need to be set, especially because this floor space is going to increase by 15% until 2030, mostly in developing countries. The framework would surely call on companies to consider the full lifecycle of materials and give priority to low-carbon options in construction projects.
4. Retrofitting of Existing Buildings
Retrofitting is a critical element in the SBTi approach, considering that 80% of the buildings standing today will still be standing by 2050. Retrofitting involves improving the energy efficiency of already existing buildings to reduce their operational emissions. The framework encourages increasing retrofitting activities to double by 2030, which is consistent with IEA’s Net Zero by 2050 Scenario.
A Holistic Approach to Decarbonization
In taking a Holistic Approach, the Building Sector Science-Based Target-Setting Criteria, developed for the SBTi, cover all forms of energy consumption and associated emissions within the sector. This includes those often overlooked, such as leaks and other sources. Indeed, this comprehensive approach should enable companies and financial institutions to avoid the worst impacts of climate change and ensure effective contributions of the buildings sector toward global net-zero goals.
Call to Action
The SBTi urges corporate and financial actors in the buildings sector to act quickly to set science-based targets under this new framework. Achieving the general goal of keeping global temperature rise within the 1.5°C limit requires that both new and existing buildings be decarbonized. The methodology for making strides toward net-zero emissions is provided in the SBTi framework, which requires that industry leaders champion this change.
Conclusion
This new SBTi decarbonization framework is a big missing link in the global aspiration to fight climate change. Most of the contribution in global emissions is from the buildings sector. Companies and financial institutions are urged to adopt these measures so that they rescue not only the environment but also safeguard their operations from increasing risks associated with climate change.
Source: SBT