Key Takeaways

• The SBTi has launched a new buildings sector decarbonisation framework.
• For 1.5°C aligned emissions reduction targets to address climate challenges and get to net zero.
• The buildings sector is a big contributor to energy-related emissions and will face economic and environmental impacts from climate change.
• Key actions are to stop using fossil fuels, reduce in-use and embodied emissions and retrofit existing buildings.

The Science Based Targets initiative (SBTi) has launched a new decarbonisation framework for companies and financial institutions in the buildings sector.

This is 1.5°C aligned to reduce emissions and address climate challenges to get to net zero.

The buildings sector is more than 25% of energy-related emissions and is already being impacted by climate-related issues. For example, construction delays due to extreme weather are already costing billions of dollars globally.

The SBTi’s new framework, the Buildings Sector Science-Based Target-Setting Criteria, takes a holistic approach by covering all energy consumption and emissions, including those from leaks, to help businesses avoid the worst impacts of climate change.

To meet the new criteria companies and financial institutions in the buildings sector should:

• Stop Fossil Fuel Installations: Publicly commit to stop installing fossil fuel-based systems for heating, cooking, power generation and hot water by 2030.
• Reduce In-Use Emissions: Focus on reducing emissions from a building’s energy use. SBTi has worked with the Carbon Risk Real Estate Monitor initiative (CRREM) to develop regional pathways for these emissions, taking into account local power grid and building usage patterns.
• Cut Embodied Emissions: With global floor space expected to grow by 15% by 2030, especially in developing regions, we need to set targets to reduce emissions from materials, manufacturing, transportation and construction.
• Retrofit Existing Buildings: 80% of today’s buildings will still be in use by 2050, so retrofitting needs to more than double by 2030 to meet the International Energy Agency’s Net Zero by 2050 Scenario. SBTi encourages companies to commit to upgrading energy efficiency in existing buildings.

Alberto Carrillo Pineda, Chief Technical Officer of the SBTi, says, "This sector now has the tools to build towards net-zero - companies and financial institutions must take immediate action. Decarbonizing both old and new buildings is paramount to tackling climate change. We call on these businesses to lead the net-zero transformation."

Follow KnowESG's Regulator News for regular news and views.

Discover an extensive network of ESG providers here

Check out KnowESG's latest ESG Course updates

Source: SBTi