Climate change in construction: 1.4 trillion euros needed for climate-neutral conversion!

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On July 8, 2025, the challenges and opportunities of climate-friendly restructuring in the construction sector will be analyzed. Experts emphasize the need for decarbonization and circular solutions.

Am 8.07.2025 werden die Herausforderungen und Chancen des klimagerechten Umbaus im Bausektor analysiert. Experten betonen die Notwendigkeit zur Dekarbonisierung und kreislauforientierten Lösungen.
On July 8, 2025, the challenges and opportunities of climate-friendly restructuring in the construction sector will be analyzed. Experts emphasize the need for decarbonization and circular solutions.

Climate change in construction: 1.4 trillion euros needed for climate-neutral conversion!

The discussion about CO2 emissions in Germany is becoming more and more urgent. Germany's residential buildings are responsible for around 14 percent of national CO2 emissions. A current study sheds light on this fact, which shows the enormous financial requirements for a climate-friendly conversion. According to the study, restructuring the real estate sector will cost around 1.4 trillion euros. These figures highlight 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 early measures to meet the requirements of climate protection. The results come from a joint study by Allianz and Allianz Trade, which comprehensively analyzes the situation in the construction and real estate sector.

The need for climate-friendly restructuring is not only clear in Germany. Global studies also show that the construction sector can play a crucial role in reducing CO2 emissions. Research from McKinsey and the World Economic Forum suggests 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 value creation potential of up to 360 billion US dollars.

Circular economy in construction

The analysis focuses on the circular 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 needed by 2050 has yet to be built, particularly in emerging regions such as Africa, the Middle East and Asia. The construction sector, which is responsible for a third of material consumption and 26 percent of global CO2 emissions, also provides an important economic base, employing 7 percent of the global population and contributing 13 percent of economic output.

As the world's population grows and urbanizes, construction activity is constantly increasing. In fact, a new building the size of New York City is built every 40 days. The study identifies three key areas for improving the carbon footprint: the circulation of materials, the recycling of energy and the further use or storage of CO2. Cement and concrete in particular, which together generate 30 percent of emissions in the building sector, are a significant source of global CO2 emissions at 7 percent.

The potential for saving CO2 is considerable. By using renewable energy, recycling and CO2 storage, a total of 2,440 million tonnes 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 highlights that it is crucial to identify and implement working approaches to circularity in the construction sector.

Given this information, it is clear that a coordinated approach to achieving climate goals in the construction and real estate sector is essential. Only through a comprehensive strategy that takes both ecological and economic aspects into account can the necessary transformation succeed and the climate goals be achieved by 2050.