Construction & manufacturing responsible for over 50% of global emissions

This article examines the breakdown of global carbon emissions based on data from the International Energy Agency (IEA) and explores the implications for sustainability efforts.

Understanding the scope of global emissions

Energy use in buildings

According to IEA data for 2022, energy use in building stock contributed to 26% of global carbon emissions, equating to approximately 9.6 Gt CO2. This figure encompasses emissions from the operation and maintenance of buildings, including heating, cooling, and lighting. The built environment's impact on global emissions is substantial, considering both residential and commercial structures.

The energy consumption in buildings is influenced by various factors, including:

1. Building design and insulation
2. Efficiency of HVAC systems
3. Lighting technologies
4. Appliance energy ratings
5. Occupant behavior

Improving energy efficiency in buildings presents a significant opportunity for emissions reduction. Strategies such as better insulation, smart building management systems, and the integration of renewable energy sources can substantially decrease a building's carbon footprint over its lifecycle.

Direct manufacturing emissions

The manufacturing sector's direct carbon emissions, according to IEA data, including process emissions but excluding indirect emissions from electricity use, accounted for 25% of global emissions in 2022, or about 9 Gt CO2. These figures represent the immediate impact of industrial processes.

Direct emissions in manufacturing come from various sources:

1. Fuel combustion for energy
2. Chemical reactions in production processes
3. Leakage from industrial equipment
4. Waste treatment

Industries such as steel, cement, and chemicals are particularly emission-intensive due to the nature of their production processes. Addressing these emissions requires a combination of technological innovation, process optimization, and a shift towards cleaner energy sources.

Electricity use in manufacturing

In 2019, the IEA reported that manufacturing accounted for 41.9% of global electricity consumption. When applied to the electricity sector's emissions of 14.8 Gt CO2 in 2022, and assuming manufacturing uses the global electricity mix, this translates to approximately 6.2 Gt CO2 attributable to manufacturing's electricity use.

The high electricity consumption in manufacturing highlights the importance of:

1. Improving energy efficiency in industrial processes
2. Transitioning to renewable energy sources
3. Implementing smart grid technologies
4. Exploring energy storage solutions to balance supply and demand

Total carbon impact and adjustments

Combining these figures (9.6 Gt + 9 Gt + 6.2 Gt) results in a total of 24.8 Gt CO2 emissions related to construction and manufacturing. When compared to the IEA's reported global emissions of 36.8 Gt CO2 in 2022, this would represent approximately 67% of global carbon emissions.

However, this figure may overestimate the impact of sectors typically addressed by sustainability software platforms. After adjusting for sectors not typically covered and subtracting approximately one quarter of the manufacturing emissions, the total comes to about 21 Gt CO2. This adjusted figure represents approximately 57% of global emissions.

It's worth noting that these calculations do not fully account for emissions from the transport of materials for these industries due to the complexity of precise assessment on a global scale. The inclusion of transportation emissions would likely increase the overall impact of these sectors.

Implications for sustainability efforts

The significant contribution of construction and manufacturing to global emissions underscores the critical importance of focusing sustainability efforts on these sectors. Key areas for improvement include:

Energy efficiency

Implementing energy-efficient technologies across both construction and manufacturing can lead to substantial emissions reductions. This includes optimizing industrial processes, using high-efficiency equipment, and designing buildings for minimal energy consumption.

Circular economy principles

Adopting circular economy practices can reduce waste and minimize the need for raw material extraction. This involves designing products for longevity, reusability, and recyclability, as well as implementing effective recycling and waste management systems.

Renewable energy transition

Transitioning to renewable energy sources for both building operations and manufacturing processes is crucial. This may involve on-site renewable energy generation, power purchase agreements for clean energy, or participation in community renewable energy projects.

Low-carbon materials

Developing and using low-carbon materials in construction and manufacturing can significantly reduce embodied carbon. This includes researching alternatives to emission-intensive materials like cement and exploring bio-based materials.

Find and compare low-carbon materials from around the world with the Materials Compass.

Process optimization

Optimizing industrial processes through automation, artificial intelligence, and advanced control systems can reduce energy consumption and minimize waste. This may also involve redesigning production lines for greater efficiency.

Green building design

Reimagining building design to prioritize energy efficiency, passive heating and cooling, and integration with natural systems can dramatically reduce operational emissions over a building's lifecycle.

Supply chain management

Improving the sustainability of supply chains, including sourcing materials locally when possible and optimizing transportation logistics, can help reduce overall emissions.

Carbon capture and storage

For hard-to-abate emissions in certain manufacturing processes, carbon capture and storage technologies may play a crucial role in reducing net emissions.

Policy and industry response

Given the substantial impact of construction and manufacturing on global emissions, a coordinated response from policymakers and industry leaders is essential. This may include:

Stringent emissions standards

To effectively reduce emissions, both the construction and manufacturing sectors must adopt stricter emissions standards. Policies such as those implemented by the European Union through its Fit for 55 initiative, which seeks to reduce net greenhouse gas emissions by at least 55% by 2030, serve as a model. In the U.S., the Environmental Protection Agency (EPA) has also introduced regulatory frameworks to curb emissions in industrial sectors, including setting performance standards for new constructions and manufacturing facilities. 

Financial incentives

Providing tax breaks, grants, or other financial incentives for companies that invest in emission-reduction technologies or achieve significant emissions reductions. The  IEA has emphasized that without targeted financial incentives, industries may be slow to transition away from carbon-intensive practices. 

Research and development funding

Increasing public and private funding for research into low-carbon technologies, materials, and processes specific to construction and manufacturing. The European Commission has established funding mechanisms, such as the Horizon Europe program, which allocates billions of euros to research in climate-neutral technologies.

Carbon pricing

Implementing effective carbon pricing mechanisms such as cap-and-trade programs and carbon taxes, can provide the necessary economic incentives to shift industries toward sustainable practices. According to the IEA, carbon pricing has proven effective in internalizing the cost of emissions, encouraging firms to seek low-carbon solutions. 

Skill development

Investing in education and training programs to develop a workforce skilled in sustainable construction and manufacturing practices. Governments and industries must invest in education and vocational training programs focused on sustainable manufacturing and green construction techniques. 

International collaboration & harmonization

Fostering international cooperation to share best practices, technologies, and policies for reducing emissions in these sectors. Given the global nature of emissions and supply chains, international collaboration is imperative for achieving emissions reductions in construction and manufacturing. The Paris Agreement provides a global framework for nations to work together on reducing emissions, but sector-specific collaborations are needed. Harmonization of standards across borders can help prevent the displacement of emissions-intensive industries to regions with less stringent regulations. For instance, the EU’s Carbon Border Adjustment Mechanism seeks to address this by imposing tariffs on imported goods based on their carbon content, leveling the playing field for domestic producers who comply with stricter environmental standards.

While the exact percentage may be subject to ongoing research and debate, it's clear that construction and manufacturing contribute substantially to global carbon emissions. Whether the figure is precisely 57% or simply "more than half," the implication remains the same: focusing on these sectors presents a significant opportunity for meaningful climate action.

Balancing economic growth with emissions reduction

The scale of emissions from construction and manufacturing underscores both the challenge and the opportunity before us. By implementing comprehensive strategies to reduce emissions in these sectors, we have the potential to make substantial progress in mitigating climate change. Innovative solutions in construction and manufacturing will be key to achieving substantial reductions in global greenhouse gas emissions. As industries move toward decarbonization, maintaining economic competitiveness will be a challenge, particularly for developing countries heavily reliant on carbon-intensive industries. Policymakers must balance the need for economic growth with environmental goals. 

The path forward requires collaboration between governments, industries, researchers, and communities. By working together to transform these vital sectors, we can create a more sustainable, low-carbon future while continuing to meet the world's needs for infrastructure and goods. The journey towards sustainability in construction and manufacturing is not just an environmental imperative, but also an opportunity for innovation, economic growth, and improved quality of life for people around the globe.

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