Over the past decade, embodied carbon emerged as a critical factor to consider in the planning and construction of buildings. Embodied carbon represents the millions of tons of Earth-warming carbon emissions released during the life cycle of building products. The World Green Building Council estimates embodied carbon alone accounts for 11 percent of global annual energy-related emissions. Given the scale of the sector’s climate impact, it is imperative that owners, designers, builders, manufacturers, and policymakers lead the market by prioritizing this issue. As our understanding of embodied carbon has steadily increased, so has the urgency of reducing all carbon emissions. Report | 2023 Driving Action on Embodied Carbon in Buildings.........
AND.....RMI and USGBC provide answers to current questions about embodied carbon and key actions to accelerate the decarbonization of building construction. RMI Tracy Huynh, Chris Magwood, Victor Olgyay, Laurie Kerr, Wes SullensRMI and USGBC provide answers to current questions about embodied carbon and key actions to accelerate the decarbonization of building construction. RMI Tracy Huynh, Chris Magwood, Victor Olgyay, Laurie Kerr, Wes SullensBuilding decarbonization requires collective industry action: forerunners are already demonstrating what is possible, but we need more leaders to push the boundaries to scale up swift and deep decarbonization. The industry is poised to make this leap, and there are substantial emissions reductions available today that are well within reach. Tools and guidance are widely available, low-hanging fruit have been identified, and new policies are creating greater market certainty. It is time for everyone to get on board to reduce embodied carbon. This report shows you how to get started........
The Business Case for Reducing Embodied Carbon: 9 Investments Commercial Real Estate Developers Can Make Today RMI July 25, 2024 By Aurimas Bukauskas, Anish Tilak Key Takeaways Integrative design, efficient use of materials and space, prioritization of retrofits, and circular construction paired with climate-aligned procurement, reporting, and marketing can reduce embodied carbon while creating business value. Some embodied carbon reduction measures cut development costs. Other measures can provide developers with a competitive advantage in the emerging low-embodied carbon construction sector. Embodied carbon actions are most valuable when combined, rather than deployed individually. Late adoption of low-embodied carbon construction practices could strand assets. Introduction Zero embodied carbon construction: a technology transition with a climate deadline Embodied carbon, the climate pollution associated with material production and construction activities, is responsible for an estimated 11% of global emissions. Embodied carbon can make up 50% of the life-cycle emissions of a building. This proportion will increase as building operations become more energy efficient and electricity grids switch to clean energy sources. Like the energy transition generally, achieving zero-embodied carbon construction is a technology transition with a climate deadline. This industry transformation must be achieved by 2050 to avoid the worst consequences of climate change and secure a livable future for all. Like any corporate real estate sustainability initiative, tackling embodied carbon poses its own set of hurdles. However, research shows that overcoming these hurdles is not only achievable, but also holds potential economic, competitive, and environmental advantages for developers, asset managers, and other market actors. Multiple pathways to zero emissions have been established. For example, the Science Based Targets Initiative (SBTi) has developed climate-aligned paths to net-zero embodied carbon construction by 2050. The US Federal Buy Clean Initiative has also called for zero-embodied carbon construction by mid-century. This investment guide provides further guidance on strategies, business opportunities, and key actions to track and reduce embodied carbon.
Embodied carbon is a transition risk; Developers face increasing pressure from investors, tenants, and regulators to disclose Scope 3 emissions. Embodied carbon makes up a substantial part of commercial real estate developers’ Scope 3 emissions, which in turn comprise as much as 90% of developers’ Scope 1–3 emissions. Investors’ capital allocation decisions, tenant leasing preferences, and government regulations increasingly penalize high embodied carbon construction practices. Reducing embodied carbon can increase access to investment dollars, attract tenants, and future-proof business practices against government regulation. Below we explain how investing in embodied carbon reduction can reduce the cost of capital, attract tenants, and future-proof business practices against future regulations.
Embodied carbon as a business opportunity: nine investments developers can make today Embodied carbon, sometimes referred to as “capital carbon,” is often correlated with capital costs. Reducing embodied carbon can cut development costs. Strategic action on embodied carbon can also help developers position themselves for competitive advantage as the global real estate sector’s transition to low-embodied carbon practices advances. This guide outlines nine strategies for developers to reduce embodied carbon while creating business value. These measures can increase developers’ portfolio profitability per unit of embodied carbon. Combining measures can reduce embodied carbon and increase profitability more effectively than deploying them individually. Many of the actions presented also drive virtuous cycles which accelerate the commercial real estate sector’s transition to low-embodied carbon materials and practices. The recommended strategies are organized into two broad categories: building strategies, which are deployed at the asset level, and corporate strategies, which can inform portfolio-wide initiatives....read on https://rmi.org/the-business-case-for-reducing-embodied-carbon-9-investments-commercial-real-estate-developers-can-make-today/