SBTi Launches World-First Framework to Decarbonise Buildings
The buildings sector is responsible for over a quarter of the world’s energy-related emissions.
The World Economic Forum (WEF) has identified the sector as being “the key” to fighting climate change and says it has the potential to unlock US$1.8tn in market opportunities globally.
To move the industry towards net zero, the Science Based Targets initiative (SBTi) has launched a world-first framework and calls for building companies and financial institutions to take action.
Alberto Carrillo Pineda, Chief Technical Officer at the SBTi, says: “This sector now has the tools to build towards net-zero – companies and financial institutions must take immediate action.”
“Decarbonising both old and new buildings is paramount to tackling climate change. We call on these businesses to lead the net-zero transformation.”
How the SBTi built its new framework
The new framework sets emissions reduction targets aligned with preventing climate change above 1.5 degrees.
It was developed in consultation with an independent Expert Advisory Group made of companies, financial institutions, non-profit and multilateral organisations.
Patrick Ho, Head of Sustainable Development at Swire Properties, says: “As a member of the Expert Advisory Group, Swire Properties is excited to support the launch of the SBTi Building Sector Target-Setting Criteria.
“The initiative provides a scientifically robust and practical framework for real estate developers and stakeholders to establish pathways aligned with the 1.5°C target for both in-use operational and upfront embodied emissions.”
The process included a two month public consultation in 2023 and a four month pilot test through 2024 in line with the requirements of the Standard Operating Procedure for Development of SBTi Standards.
Feedback from the pilot shows it helped companies to support transparent best-practice climate reporting, understand the reduction requirements and direction of industry GHG reporting and enhanced internal cross-collaboration on applying Buildings Sector Guidance Principles.
The SBTi’s four key actions
The new framework offers companies four key actions to decarbonise the sector:
- Stop fossil fuel installations
- Reduce in-use emissions
- Retrofit inefficient buildings
- Reduce upfront embodied emissions
The SBTi says companies should commit publicly to halting the installation of fossil fuel based heating, power generation, cooking and hot water equipment from 2030 at the latest.
It also calls for the reduction of in-use operational emissions. The initiative collaborated with the Carbon Risk Real Estate Monitor initiative (CRREM) to develop regional pathways so targets reflect variations in local power grids.
Prof. Dr. Sven Bienert, Head of the CRREM Consortium, says: "As a long-standing advocate for the decarbonization of the real estate sector, CRREM is pleased to support the release of SBTi's Buildings Criteria and supplementary resources as a technical partner.
“These tools and actionable guidance provide clear, science-based targets that enable the sector to accelerate decarbonisation and drive the global shift to a net-zero economy.
“CRREM is committed to continuing the collaboration with SBTi to drive meaningful progress in reducing the carbon footprint of the buildings sector."
The SBTi says global floor area is expected to grow around 15% by 2030, nearly 80% of which will be in developing economies. It calls on companies to reduce upfront bodied emissions to combat this.
The initiative also says retrofitting needs to more than double by 2030 to align with the 2050 Scenario.
Peter Heymann Andersen, COO at Ramboll, says: “We at Ramboll applaud the SBTi’s latest targets for Buildings, offering a definitive channel for the industry to align with the Paris Agreement goals.
“Having science-based targets, recently validated by SBTi, Ramboll has demonstrated our commitment towards reducing carbon emissions, which also includes targeting reductions from our building designs by 50% come 2030.
“Achieving this is no small feat—it mandates a cohesive effort across the value chain. The SBTi’s guidance is invaluable; it not only demystifies 'Paris-aligned' for the sector but also fortifies our discourse with partners and clients, steering us toward a sustainable future in unison.”
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