Retrofitting: balancing embodied carbon and operational savings

A new report highlights that significant improvements are needed in the retrofit sector to deliver expected results. By Hassan Sabir.

In the fight against climate change, the real estate and construction sectors occupy a pivotal position, with a unique capacity to drive significant reductions in emissions through focused efforts. The pressing need to retrofit existing structures to boost energy efficiency and slash operational emissions is more critical than ever. However, this essential transition introduces a notable environmental challenge: the rise in embodied carbon emissions linked to construction and retrofit processes.

The insightful report, Embodied Carbon of Retrofits, produced in collaboration with CRREM, Hines and UNEP FI (United Nations Environment Programme Finance Initiative) delves into this complex balancing act. It highlights a significant research gap in our understanding of the trade-offs between the embodied carbon generated during retrofitting and the operational carbon savings these efforts aim to achieve.

Payback period

The analysis of 36 completed global retrofit projects revealed a significant variance in embodied carbon emissions. However, these projects also demonstrate the potential for a carbon payback period ranging from four to eight years, depending on the asset class and assuming the assets have a prolonged remaining life. This finding is pivotal, suggesting that retrofitting, particularly with the adoption of low-carbon and bio-based materials, can be environmentally beneficial over time.

The report does not shy away from advocating for substantial improvements in the sector. Among its key recommendations are the integration of low-carbon materials in retrofit projects, the expansion of research into low-carbon solutions, and the enhancement of data quality for Environmental Product Declarations (EPDs). Such measures are essential for building a robust framework that supports sustainable retrofitting practices.

Retrofitting

Furthermore, the anticipated evolution of regulatory frameworks is expected to mandate the optimisation of CO2e emissions in retrofit projects, aligning them with the stringent standards set for new constructions.

While the report focuses on the embodied carbon of retrofits, it is equally important to advocate for a broader shift in the industry towards a holistic approach to sustainability. There is an urgent need for stakeholders to evaluate the entire lifecycle of embodied carbon – from design and construction to operation and eventual deconstruction or retrofitting.

This comprehensive approach is crucial for making informed decisions that align with global sustainability goals, reducing not only operational emissions but the total carbon footprint of buildings.

Integrated perspective

The Embodied Carbon of Retrofits report is a clarion call to the real estate sector. By adopting an integrated perspective that addresses both retrofitting and whole-life embodied carbon considerations, the industry can navigate the complexities of sustainable development more effectively.

This approach will not only reduce the environmental impact of existing buildings, but also ensure that new constructions are built to minimise environmental impact from the outset.

As we move forward, the report’s findings and recommendations offer a roadmap for asset owners, policymakers and industry stakeholders. It’s a guide to innovating sustainable retrofitting solutions that align with our collective environmental responsibilities.

The path to a decarbonised and environmentally responsible real estate sector is challenging, but with the insights and strategies outlined in this report, it’s a journey worth undertaking.

Hassan Sabir is finance and ESG director at the European Real Estate Association

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