Circular economy could reduce construction emissions by 2050
Through the establishment of the circular economy, a new report has found that CO2 emissions from the construction sector could be axed by up to 75%.
The findings, which were published earlier this week in partnership between McKinsey & Company and the World Economic Forum, displayed that whilst the circular economy, a model of production and consumption, which involves various sustainable practices, could reduce emissions, it also has financial benefits. The method could also lead to an annual net profit gain of up to $46bn by 2030 and $360bn by 2050.
In addition, experts discovered that carbon capture and storage and carbon capture and utilisation are each expected to contribute around 40% of the total emissions reduction by 2030.
Carbon capture storage is a way of reducing carbon emissions by storing them underground and carbon capture utilisation transforms carbon dioxide and places it into various products such as fertiliser which can enhance oil recovery.
Six building materials could be responsible for reducing carbon dioxide in the atmosphere which include cement and concrete, steel, aluminium, plastics, glass, and gypsum. Against this backdrop, researchers claimed circularity in cement could create the highest value pool across materials, with an estimated net value gain of $10bn in 2030 and could advance to $122bn in 2050.
Jukka Maksimainen, senior partner in the Helsinki office of McKinsey and co-author of the study, said: ‘Our analysis of the construction sector shows an extraordinary potential for circularity – not only through carbon dioxide savings but also on a financial level.
‘Nevertheless, we see hardly any solutions in the market that address this issue at scale yet – this makes it even more essential that we identify scalable solutions and make them visible.’
Researchers have discovered that increasing recycled plastics, and using alternative fuels, can decrease CO2 emissions from ordinary plastics by up to 62% by 2050. The report also found designing for reuse and modularity and increasing cullet use can decrease CO2 emissions from glass by up to 41% by 2050.
Commenting on the report, Sebastian Reiter, a partner in the Munich office of McKinsey and co-author of the study, said: ‘The construction sector is a crucial industry for reducing greenhouse gas emissions in the long term.
‘One-third of material consumption and 26% of global carbon dioxide emissions come from this sector. At the same time, this sector employs 7% of people globally and accounts for 13% of economic output.’
Image: Joe Holland
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