The Science Based Targets initiative (SBTi) has introduced a pioneering framework for decarbonising the buildings sector, setting targets aligned with a 1.5°C reduction pathway. This new approach aims to address climate challenges and advance towards a net-zero future.
Responsible for over a quarter of global energy-related emissions, the buildings sector faces significant climate impacts, including costly construction delays due to adverse weather. The SBTi’s new Buildings Sector Science-Based Target-Setting Criteria adopts a comprehensive approach, covering all energy use and fugitive emissions to help businesses mitigate climate change effects.
The framework calls for four key actions for companies and FIs in the building value chain. The first criterion is a public commitment to halting the installation of fossil fuel-based heating, cooking, power generation and hot water equipment from 2030. The framework also calls for in-use emissions are those associated with a building’s energy use. The SBTi collaborated with the Carbon Risk Real Estate Monitor initiative (CRREM) to develop regional pathways for in-use emissions so that targets reflect variations in local power grids and how buildings are used.
Another criterion is the reduction in upfront embodied emissions. Global floor area is expected to grow by 15% by 2030, nearly 80% of which will be in developing economies. The criteria require companies to set a target to reduce embodied emissions, i.e. those from raw materials, manufacturing, transportation and construction.
It also calls for retrofitting inefficient buildings as 80% of current buildings are expected to remain standing until 2050. Retrofitting needs to more than double by 2030 to align with the IEA’s Net Zero by 2050 Scenario. The SBTi recommends companies commit to implementing energy efficiency improvements to decarbonise old buildings.
“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.” said Alberto Carrillo Pineda, Chief Technical Officer of the SBTi.
Developed with input from an Expert Advisory Group, including industry and non-profit representatives, the framework was refined through public consultation and a pilot test.
Prof. Dr. Sven Bienert, Head of the CRREM Consortium said, “As a long-standing advocate for the decarbonisation 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.”
Peter Heymann Andersen, COO at Ramboll said, “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.”
Patrick Ho, Head of Sustainable Development at Swire Properties said, “Crucially, the introduction of the “whole building approach” — which includes both landlord and tenant-controlled spaces within the target-setting boundary — enhances accountability for emissions reduction and encourages collaboration between landlords and tenants in decarbonisation efforts.”
