New Report Reveals That More Than 50% Of Built Environment Emissions Can Be Reduced With Existing Technology By 2030
The Net Zero Built Environment Council and McKinsey identify the business opportunities for decarbonisation of the built environment.
Latest analysis from McKinsey & Company (McKinsey) uncovers that industry players in the built environment have the potential to reduce emissions by more than 50% by 2030 with currently available technologies. It identifies several business opportunities across the value chain that could lead to cost-effective decarbonization for the sector in its latest report: Building value by decarbonizing the built environment.
Looking at over 1,000 potential decarbonization levers for the built environment, McKinsey identifies the top 30 that can be used to decarbonize buildings - many of which are either already cost effective relative to conventional practices or are expected to be at or close to cost parity by 2030 if industrialized.
To capture economic benefits, industry players will likely need to act decisively to increase production of technologies and materials, build service companies, unlock supply chains, and develop the necessary operational skills across the value chain to implement solutions at scale. For example, approximately 60% of built environment operational emissions come from space cooling, space heating, and water heating. Heat pumps could abate up to 60% of heating and cooling emissions for most building types. However, the heat pump supply chain currently is experiencing manufacturing and supply chain bottlenecks that providers would have to solve.
Erik Sjödin, Partner at McKinsey & Company commented: “The report highlights potential pathways to decarbonize the built environment and presents many proven and available technologies and solutions that companies in the ecosystem can implement today, and often cost-effectively. We have aimed to focus on some of the largest opportunities that industry players could realize by scaling production, building future operating models, and developing skills and expertise across the value-chain.”
Brodie Boland, Partner at McKinsey & Company adds: “The built environment is a crucial sector for decarbonization, and companies in this sector have a unique opportunity to capture value and build businesses, while enabling the transition to a low-carbon world.”
You can download the report: Building value by decarbonizing the built environment, here.
