Climate change under construction: 1.4 trillion euros required for climate -neutral conversion!

Climate change under construction: 1.4 trillion euros required for climate -neutral conversion!

Holzhausen, Deutschland - The discussion about CO2 emissions in Germany is gaining more and more urgency. Germany's residential buildings are responsible for around 14 percent of national CO2 emissions. This is illuminating a current study, which shows the enormous financial requirements for climate -friendly renovation. According to the investigation, a renovation of the real estate sector will cost around 1.4 trillion euros. These numbers illustrate the urgent need for action in the area of ​​decarbonization, which is described as extremely challenging. Arne Holzhausen from Allianz Research emphasizes how important it is to take measures at an early stage in order to meet the requirements of climate protection. The results come from a joint investigation by Allianz and Allianz Trade, which extensively analyzes the situation of the construction and real estate sector.

The need for climate -friendly renovation is not only clear in Germany. Studies also show globally that the construction sector can play a crucial role in reducing CO2 emissions. An investigation by McKinsey and the World Economic Forum indicates that CO2 emissions from the construction sector can be reduced by up to 75 percent or 4 gigatons by 2050. The introduction of a circular economy is identified as a key strategy, with a potential for value of up to $ 360 billion.

circular economy in construction

The analysis is aimed at the circulatory concepts for six essential building materials such as cement, concrete, steel, aluminum, plastic, glass and plaster. It is important to note that 75 percent of the infrastructure required by 2050 still needs to be built, especially in emerging regions such as Africa, the Middle East and Asia. The construction sector, which is responsible for a third of the material consumption and 26 percent of global CO2 emissions, also offers an important economic basis because it employs 7 percent of the global population and contributes 13 percent to economic performance.

In the course of urbanization and growth of the world population, construction activity is constantly increasing. In fact, a new building in the size of New York City is being built every 40 days. The study identifies three central areas to improve the CO2 balance: the circulation of materials, the return of energy and the further use or storage of CO2. Particularly cement and concrete, which together produce 30 percent of emissions in the building area, are an essential origin of global CO2 emissions with 7 percent.

The potential for saving CO2 is considerable. By using renewable energy, recycling and CO2 storage, a total of 2,440 million tons of CO2 could be saved by 2050. Steel also has a savings potential of up to 970 million tons, while aluminum could save 330 million tons and plastic 149 million tons of CO2 through optimized recycling methods and the use of renewable energy. Sebastian Reiter from McKinsey emphasizes that it is crucial to identify and implement functioning approaches to circularity in the construction sector.