Net-zero operational carbon buildings: state of the art

©TsukubaSumitomo ©Skanska Net-zerooperationalcarbonbuildingsStateoftheart →Whereweareonthejourneytonet-zerobuildingsinoperation Contents 01. 02. 03. Foreword03 Executivesummary04 Introduction07 Builtenvironment08 Carbonfootprint09 Optimizingwhole-lifecarbon10 Definingnet-zerocarbonbuildingsinoperation11 Keyprinciples12 Transformationpathway13 Buildingvs.portfoliovs.corporate14 Demandreductiontrajectories15 Definitionsaroundtheworld16 Governmentdefinitions17 Industrydefinitions19 Assessingnet-zeroemissions20 Global/international net-zerocertifications21 04. 05. 06. Deliveringnet-zeroemissions25 Designandconstruction26 Handoverandoperation27 Net-zerocarbonrenewable energyprocurement28 Carbonoffsetting29 Regionalprogress overview30 Transitiontonet-zerocarboninoperation:supplyanddemand31 Australia33 China34 HongKongSpecialAdministrativeRegionofthePeople’sRepublic ofChina(HKSAR)35 EuropeanUnion36 Japan37 UnitedKingdom38 UnitedStatesofAmerica39 Stateoftheart Casestudiessampleofdeliveryandincentives40 Glossary52 Net-zerooperationalcarbonbuildings–Stateoftheart1 “Inthescenariosweassessed,limitingwarmingtoaround1.5ºCrequiresglobalgreenhousegasemissionstobereducedby43%by2030.” IntergovernmentalPanelonClimateChange(IPCC) Theevidenceisclear:thetimeforactionisnow.Wecanhalveemissionsby2030 “CO2emissionsfrombuildingsoperationhavereachedanall-timehighofaround10GtCO2,arounda5%increasefrom2020and2%higherthanthepreviouspeakin2019.” UNEnvironmentProgramme GlobalStatusReportforBuildingsandConstruction Net-zerooperationalcarbonbuildings–Stateoftheart2 Foreword InSeptember2023,theaveragemonthlyglobaltemperaturewasafull0.5degreesCelsiusabovethepreviousrecord. Atthetimeofwriting2023lookshighlylikelytobethehottestyearever.1Astarkreminderifanywereneededoftheurgentneedtotakeactiontoaddresstheclimatecrisis. Representingaround40%ofglobalcarbonemissions,thebuiltenvironmentisacriticalsectortotackleontheroadtonet-zero.TheUNHighLevelClimateChampions2030BreakthroughGoalssetatargettohalveglobalcarbonemissionsby2030,for100%ofbuildingprojectscompletedin2030tobenet-zeroinoperationandtoreduceembodiedcarbonby40%.9Thisisahugechallengewhenyouconsiderthatin2023,asthispublicationdemonstrates,wedon'tevenhaveaglobalconsensusonwhatanet-zerobuildingis. ThisdocumentispartofapublicationseriesbytheWorldBusinessCouncilforSustainable Development(WBCSD)thatseekstotakestockofourprogresstodateonthejourneytonet-zero emissionsacrossthewhole-lifecarbonofbuildingsandtobringglobalconsistencyinmappingthepathahead. Previouspublicationshaveexploredembodiedcarbon,whichwhileitrepresentshalfofpropertylife-cyclecarbonimpactinnewbuild,isarelativelynewareaofstudyandfocus.Thepreviousreport,Net-zerobuildings:Halvingconstructionemissionstodaydemonstratesthatwehavethepotential tomakeasubstantialshiftwithtechnologiesalreadyavailable. Theoperationalcarbonlandscapeissomewhatdifferentinthat,fromatechnicalpointofview,stakeholdersunderstandenergyefficiency.Wehavethetechnicalsolutionsweneedtodelivernet-zerobuildingsinoperation.However,asevidencedbythe2030BreakthroughGoals,ouroverallobjectiveistoreducewhole-lifecarbon(WLC)emissions–bothoperationalandembodied.Therefore,weneedtohaveaneyeonthebalancebetweenthetwo.Wehaveyettoembedthisprinciplewellinpractice,withoperationalandembodiedcarbonlargelyconsideredasseparateissues. Thispublicationdemonstratesthatwearemissingacleardirectiontohelpdrivethechangeneededinbehaviors,frominvestmentCEOsthroughsupplychains(design,constructionandoperation)toindividualoccupants.Ittakesstockoftheexistingsituation,highlightswherewearemakingprogress andidentifiesgaps,bothinpolicyandpractice.Inthispublicationwesetoutthefundamentalprinciplesofwhatanet-zerobuildingis.Wewillfollowupwitharesearchprograminpartnershipwithourmembers tosetoutindetailourproposalstoaddresscurrentshortcomings,sothatwecanshineabrighterlightontheroadahead. “Thereisarealsensethatweareonthecuspofamajorshifttowardsalarge-scaletransitiontonet-zeroemissionsinthepropertysector.Butthetargetisnotyetclearlyinsight.ThisWBCSDreportseriesisacrucialsteponthejourneytocreatingclarityandthusunlockingthechangethatisdesperatelyneeded.” StephenHill,AssociateDirector,Arup “Thebuildingssectoriscriticaltoachievetheenergytransition,asitconsumesmorethanhalfoftheworld’selectricity.Reducingenergy consumptionandswitchingtorenewableenergyaretwosidesofthesamecointoachievenet-zerooperationalbuildingsatscaleinlinewithavailablecapacity.” RolandHunziker,Director,BuiltEnvironment,WBCSD Net-zerooperationalcarbonbuildings–Stateoftheart3 Executivesummary Anassessmentofthe2,000largestpubliccompanies,representingsalesofnearlyUSD$14trillion,showsthatone-fifthnowhavenet-zerocommitments.2 Despitetheriseincorporatenet-zerocommitments,inthepropertysectorthereis: *Nogloballyconsistentandrobustdefinition ofanet-zerobuilding; *Notonenationalpolicyrequiringbuildingstobetrulynet-zeronoworinthefuture; *Substantialvariationinnet-zerostandards setbyindustrycertifications; *Anegligiblenumberoftrulynet-zerobuildingsglobally. Weareseeingincrea