The Science Based Targets Initiative (SBTi) announced the launch of its new science-based decarbonization framework for companies and financial institutions in the building’s value chain.
The proposed framework sets emissions reduction targets aligned with a 1.5°C pathway, addressing current climate issues and steering the industry toward a net-zero future.
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As per SBTi’s announcement, the building sector accounts for over a “quarter of energy-related emissions” and has been significantly impacted by the climate crisis. The impacts include delays in construction due to severe weather conditions and an increase in money going into the sector.
The new framework, Buildings Sector Science-Based Target-Setting criteria, involves a ‘whole building approach’, encompassing all energy use and fugitive emissions (such as leakage).
This comprehensive framework empowers businesses to contribute effectively to mitigating the severe consequences of climate change.
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When adhering to the new criteria, companies and financial institutions in the building value chain should focus on four essential actions:
- Cease fossil fuel installations: Make a public pledge to stop installing fossil fuel-based systems for heating, cooking, power generation, and hot water by 2030 the latest.
- Minimize operational emissions: Address the emissions produced during a building’s operation. In collaboration with the Carbon Risk Real Estate Monitor (CRREM), the SBTi has developed regional pathways for operational emissions, taking into account local power grid differences and building usage patterns.
- Cut embodied emissions: With global floor area projected to increase by approximately 15% by 2030—primarily in developing countries—the criteria demand that companies set targets to lower embodied emissions, which come from raw materials, manufacturing, transportation, and construction.
- Upgrade inefficient buildings: Since 80% of current buildings will remain in use until 2050, upgrading efforts must double by 2030 to meet the International Energy Agency’s Net Zero by 2050 Scenario. The SBTi advises companies to commit to enhancing energy efficiency in existing buildings to achieve decarbonization.
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“This sector now has the tools to build towards net-zero – companies and financial institutions must take immediate action,” said Alberto Carrillo Pineda, Chief Technical Officer of the SBTi.
He added, “Decarbonizing old and new buildings is paramount to tackling climate change. We call on these businesses to lead the net-zero transformation.”
This framework was created with input from an independent Expert Advisory Group (EAG) comprising companies, financial institutions, non-profits, and multilateral organizations.
Following the SBTi Standards Development Procedure, it underwent a two-month public consultation and a four-month pilot test. The feedback report summarizes the pilot process.