Building decarbonisation report highlights biggest levers

Produced in partnership with the Net Zero Built Environment Council, Building value by decarbonizing the built environment looked at more than 1,000 potential decarbonisation levers, highlighting the 30 with the biggest near-term impact. It found that over 50 per cent of buildings emissions can be reduced with existing technology by 2030, and that many of the technologies required to do so are already cost-effective.

On average, space heating/cooling and water heating emissions account for roughly three-quarters of operational emissions for residential buildings, making them obvious low-hanging fruit for decarbonisation. According to the McKinsey report, heat pumps can reduce these emissions by about 60 per cent. A major challenge, however, comes in the form of bottlenecks in the heat pump supply chain as well as a shortfall in installer expertise.

"The report highlights potential pathways to decarbonise the built environment and presents many proven and available technologies and solutions that companies in the ecosystem can implement today, and often cost-effectively,” said Erik Sjödin, partner at McKinsey.