Energy use in buildings contributes more than 17.5 percent to global greenhouse gas emissions,
and their construction is a key driver behind demand for steel and cement, which together are
responsible for another 10.2 percent of emissions. Hence, decarbonising the real estate sector is
unavoidable in order to reach net zero emission targets by 2050.
The European Union is bringing forward a raft of regulation to bring the sector on track. This
includes the potential addition of buildings’ emissions in the EU Emission Trading System (EU ETS),
and directives for energy performance and sustainable construction materials. As a result, existing
building stock without extensive retrofits, and non-aligned new housing, are at high risk of significant
losses in value.