Construction Industry Value Chain : How Companies are Using Carbon Pricing to Address Climate Risk and Find New Opportunities
The global construction industry is the world’s largest consumer of raw materials, and constructed objects account for between 25 and 40 percent of total carbon emissions in the world. The industry is projected to grow at 4.2 percent annually betwe...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/240371544174022564/Construction-Industry-Value-Chain-How-Companies-are-Using-Carbon-Pricing-to-Address-Climate-Risk-and-Find-New-Opportunities http://hdl.handle.net/10986/31055 |
| Summary: | The global construction industry is the
world’s largest consumer of raw materials, and constructed
objects account for between 25 and 40 percent of total
carbon emissions in the world. The industry is projected to
grow at 4.2 percent annually between 2018 and 2023 in terms
of market value, with expansion opportunities in
residential, nonresidential, and infrastructure projects. In
parallel, the Paris Agreement and its well-below-2 degrees
Celsius target for global temperature increase has signaled
an imperative toward decarbonization in the public and
private sectors, including creating the impetus for a
sustainable construction industry. With increasing
populations, urbanization, and the fact that almost 75
percent of the infrastructure that will exist in 2050 has
yet to be built, the construction industry is expected only
to expand, thus providing a significant opportunity to
improve its efficiency and transition toward a low-carbon
future. This paper provides a framework for considering the
construction value chain and explores existing attitudes and
initiatives toward carbon pricing along it, with the
objective of enabling companies to identify possible
synergies and align their approaches to sustainability.
Twelve of the Carbon Pricing Leadership Coalition’s (CPLC)
partner companies representing sectors across the
construction value chain, including aluminum, cement, glass,
infrastructure, equipment manufacturing, construction
services, and steel were interviewed to understand their
motivations and experiences as they attempt to implement
carbon pricing and transition toward low-carbon
construction. Finally, the CPLC provides a forum for private
companies to engage with governments to ensure the
development of well-designed carbon pricing policies to help
create a level playing field. |
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