Real estate assets pose a wide range of dangers from climate change – from rising sea levels that engulf coastal homes to heatwaves that drive up energy costs. But the fact remains as much as these builders and investors are aware of the physical threats associated with climate change, they are not entirely updated on the challenges of the low-carbon transition.
About 70% of these emissions are created by building operations, and the other 30% are generated during construction. Global and national climate targets call for considerable emissions reductions in construction and operations, which can only be accomplished by profound changes in the real estate industry.
Real estate accounts for around 40% of all carbon dioxide emissions worldwide.*
Sustainability is not a new buzz; instead, there are dedicated bodies such as The Indian Green Building Council (IGBC) who are developing new green building rating programmes, certification services and green building training programmes. The fundamental idea of the committee and the bodies likewise is to promote green building concepts in the country.
Planning the urban landscape will have a significant impact; the government needs to intervene in making imperative decisions.
Achieving Net Zero by 2050?
Despite all the efforts by the authorized bodies to fight global warming and tackle its root cause, there has been a significant rise in Carbon Dioxide emissions. In fact, since the signing of the United Nations Framework Convention on Climate Change in 1992, Carbon Dioxide emissions have increased by 60%.
The public, investors, and governments are all putting more effort into achieving net-zero emissions by 2050. But, by limiting the warming to 1.5 degrees Celsius over pre-industrial levels, the objective seeks to lessen the worst possible effects of climate change. The real estate industry is impacted by policies to achieve net zero, such as demand for renewable energy, higher building and energy efficiency standards, and rising carbon costs. High carbon pricing can result in more expensive energy and higher running costs for physical assets. To avoid restrictions on leasing or selling, property owners might need to make investments to fulfil new energy efficiency criteria. Outdated, high-emitting assets may become less desirable as a result of these added expenditures.
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Did you know that in an analysis by the Bank of England, the value of high-emitting properties declined due to the implementation of climate policies? Participants in the real estate market, including both individuals and significant institutional investors, are expressing a desire for sustainable properties. These changes reflect both concerns about high-emitting properties’ rising costs and the declining appeal of those who care about the environment.
Approaching energy efficiency concept in the Indian real-estate market
Years of economic growth (which is about 7.6% yearly since 2000) have created an accelerated demand for modern commercial and residential buildings. Consequently, this has increased energy consumption. However, till now residential buildings, which comprise about 75% of the Indian market, were not targeted for energy efficiency. Understandably, the upside of adapting and implementing energy efficiency practices and sustainable choices in the residential segment can have a tremendous impact.
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According to research commissioned by The Global Buildings Performance Network (GBPN), there were the following findings –
- The key energy efficiency regulation for large commercial buildings in India, the Energy Conservation Building Code (ECBC) adopted in June 2007, is having a positive effect
- To date, policymakers have prioritised the large commercial sector over India’s commercial mid-market and residential building segments.
- Market forces such as the falling cost of materials are helping home builders overcome the perception that energy-efficient buildings are costly.
- Consensus is growing among private and public sector leaders that now is the time to make India’s voluntary energy-efficiency code for commercial buildings mandatory.
- Home builders are less attracted by potential energy savings–since these will mostly benefit homeowners, so they would like to see more incentives for construction.
An open-source tool called the Carbon Risk Real Estate Monitor Project (CRREM) was created in collaboration with the EU to enhance the measurement of real estate transition risk and hasten low-carbon investment in the industry. A science-based decarbonization scenario is used by CRREM to present investors with the company and property-level emissions requirements. It pinpoints potentially stranded assets and suggests strategic moves. The last benefit is that it enables quantitative reporting of transition risks in a standardized way.
Using the CRREM tool, real estate portfolios can take specific preventative measures to reduce transition risks. Properties with lower carbon footprints will continue to be sought-after in the future. Different sustainability measures may be needed for new construction and existing structures. Real estate investors must take into account both kinds of assets on the road to net-zero, though.
Maintaining the green building standards
ACP sheets are one of the most sustainable forms of façade material used by the new age architects and design consultants.
Smart investors are investigating the effects of climate change on their holdings in real estate markets worldwide. Both the resilience of buildings to climate-related impacts and readiness for a net-zero future should be taken into account in their plans. Those that successfully balance these two factors will be in an excellent position to fit in the urban real estate demands in the coming years. The use of active and passive design techniques can increase a building’s energy efficiency. It has the potential benefits of saving energy, reducing energy requirements and eventual costs. Ultimately, it helps to create a more sustainable building. Using the façades such as the ACP sheets from Aludecor can increase energy efficiency and boost indoor thermal comfort. Architects use ACP sheet design to encourage energy conservation, and the trend is seeing a rise
New Construction
The world is going through an unprecedented boom in the building industry as the global human population is rising and is more urbanized. An interesting projection states that the rate of increase in the world’s building stock is comparable to creating a new New York City every month for the coming forty years! Future decisions about the types of buildings constructed and the materials used in their construction will have a significant impact on the carbon footprint of the real estate industry. It is vital to determine whether existing structures may be rehabilitated or repurposed in an adaptable manner before beginning any new development. When it comes to new construction, factors like building design and location can affect both the materials needed and the amount of energy that will be consumed in the future. One of the easiest ways to make structures sustainable is with the ACP sheet design from the architects.
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The goal should be to achieve net-zero emissions when constructing new structures, and the highest energy efficiency requirements should be used. The construction’s materials also have a significant influence on sustainability. By eliminating waste, reusing materials, and using recycled and low-carbon products (for example, the manufacturing of steel from scrap emits significantly fewer emissions than that of new steel), construction should encourage resource efficiency.
Existing construction
In 2040, around two-thirds of the current global building area will still exist. While building to net-zero standards is crucial for sustainability, existing buildings must also be considered in emissions reduction plans. Energy-efficient retrofits can reduce upcoming energy costs, satisfy escalating efficiency criteria, and raise the value of a home. Heating, ventilation, and air conditioning (HVAC) systems, lighting (which can account for up to 40% of the energy used by a commercial facility), and water use are three areas of particular emphasis for retrofits. Electrification is directly related to retrofitting these operational systems. The use of gas or oil for heating considerably impacts a building’s emissions.
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By switching to electric heat pumps instead of these fossil fuels, a building can significantly lower its carbon impact. However, how the electricity is generated is an important one. Property owners should pledge to purchase an increasing percentage of their electricity from sustainable sources that originate from low-carbon sources. Numerous structures might also be able to generate electricity on-site, such as by installing rooftop solar panels or wind turbines, which can reduce carbon footprints and energy costs.
Why use the ACP sheet from Aludecor?
Compared to solid sheets, the percentage of aluminium used in solid panels is substantially lower. This reduces the amount of energy needed for production. Also, ACP sheets can keep the inside temperature of a structure constant, which further minimises energy use. A gap exists between the wall and the bottom layer of the aluminium composite panels or the ACP boards, which help to keep the building’s interior naturally ventilated from top to bottom. The gap is beneficial for the building’s insulation and acoustic protection. It contributes to the creation of a sustainable environment inside a building by lowering energy costs and noise pollution.
Need to know more about how Aludecor can help you build an energy-efficient building? Reach out to us at 1800 102 0407(toll-free) or send us your enquiry.
Sources:
* https://www.mckinsey.com/industries/real-estate/our-insights/climate-risk-and-the-opportunity-for-real-estate
** https://www.iea.org/reports/net-zero-by-2050
