A new World Economic Forum (WEF) report outlines a roadmap for transforming the global building sector to combat climate change and protect biodiversity. The report, ‘Towards Green Building Value Chains: China and Beyond’, published in collaboration with Boston Consulting Group (BCG), identifies 11 strategic transition levers across the entire value chain of buildings. These levers, when combined, could unlock over 80% of the sector’s abatement potential and open a $1.8 trillion market opportunity by 2030, as per the new research.
As per the WEF, buildings account for 37% of global carbon dioxide (CO2) emissions, and 34% of the Earth’s species are experiencing habitat loss due to urban development. With rapid urbanisation, particularly in emerging economies, projected to persist over the coming decades, the report advocates for a comprehensive and holistic approach to the green transition across the entire global construction sector value chain. This includes addressing the full life cycle of buildings—from construction and use to end-of-life stages.
The report identifies four characteristics of a holistic vision for green buildings:
- Net zero – minimising whole-life emissions through innovative materials and technologies
- Nature positive – enhancing buildings’ environmental performance by integrating natural elements
- Resilient – maximising buildings’ ability to withstand extreme weather and climate volatility
- Well-being oriented – boosting the physical and mental well-being of their occupants, enhancing community development and ensuring access for all
To realise this vision, several critical enabling factors need to be addressed, including further policy on regulation and industry standards, data and advanced technologies such as artificial intelligence, biomaterials, and financing and upskilling support.
As the largest building market globally and home to over half of the world’s production capacity for many building materials, China plays a crucial role in decarbonising the building industry, according to the report. The report highlights that the green transition of China’s building value chain will not only generate value and new business opportunities for industry players within China but also potentially drive the development and adoption of green building products and services worldwide.
The report features case studies from various stages of the value chain, including real estate developers, design firms, energy management system providers, and cement manufacturers. It highlights best practices in material production, construction, and operations from China and other emerging economies, such as the United Arab Emirates and Brazil. Additionally, it outlines policy tools that can be adopted or adapted by other countries.
Building on the Net-zero Opportunities of Value-chain Actions (NOVA) project in China, which was launched at the World Economic Forum Annual Meeting 2024 in Davos, the report promotes cooperation among upstream and downstream players across key industries to achieve a coordinated net-zero transition in China. In its first phase, the project has focused on two sectors: buildings and renewable energy.
