Discover how the construction industry's significant environmental impact and resource consumption highlight the urgent need for sustainable practices. Learn about global initiatives driving the sector towards a more sustainable future.Buildings and structures have long symbolized development. With growing economies and industrial progress, new buildings are constantly emerging. The vast network of roads, hydropower dams, massive manufacturing facilities, and our homes are all products of the construction industry. Humans have significantly reshaped the Earth by cutting through mountains to build roads and reclaiming land from the sea. These actions have dramatically altered local and global ecosystems.Scientists refer to this extensive layer of human-made structures as the "technosphere." A recent study quantified the technosphere's weight at 30 trillion tonnes, with civil structures being significant contributors (Zalasiewicz et al., 2017). Oxford Economics estimates that investment in the construction industry will rise from USD 9.7 trillion in 2022 to USD 13.9 trillion in 2037 (Shreena, 2023). Being one of the largest sectors in the world economy, the construction industry has a huge environmental footprint. The industry stands as the single largest global consumer of resources and performs a critical role in shaping the built environment (Sizirici et al., 2021). According to Yan et al. Buildings contribute to 37% of the global GHG emissions making it by far the largest emitter, while it also consumes 40% of the global energy produced. The construction sector each year is estimated to consume 400 million materials (Sikra, 2020). The sourcing and transportation of these materials such as cement, steel timber etc. disturb ecosystems, pollute the air and water bodies and cause land degradation. Implementing sustainability in the construction industry is thus a necessary step towards a sustainable future. The construction industry due to its vast operations is highly fragmented and localized, and combined with its global supply chain implementing sustainability is a challenge. Moreover, inconsistencies in development goals and competing interests across geographies often push sustainability efforts in the background. In the wake of the current climate crisis sustainability in the construction industry is more important than ever. The last decade has observed critical steps being taken on the climate change front. The Paris Agreement emerged as a pivotal legally binding international treaty with 196 signatories that called for collaborative world action to keep the global temperature rise below 2℃ and make efforts to limit the rise at 1.5℃ above the pre-industrial level (UNFCCC, 2015). Each nation which is a party to the Paris Agreement has to submit its nationally determined contribution (NDC) that reports its greenhouse gas mitigation commitments and updates every 5 years. The construction industry being deeply entrenched in greenhouse gas emissions and also considered a sector hard to abate, lands it on the priority list of industries identified by UNEP. This highlights the importance of sustainability in the Construction and renovation industry and nudges the governments to focus their decarbonisation efforts on this sector. It also indicates that we can observe significant transitions in this industry in the coming years and can expect strict regulatory oversight to ensure an efficient transition.
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References:
Shreena. (2023, September 11). Global Construction Futures. Oxford Economics. https://www.oxfordeconomics.com/resource/global-construction-futuresSizirici, B., Fseha, Y., Cho, C.-S., Yildiz, I., & Byon, Y.-J. (2021, October 15). A review of carbon footprint reduction in construction industry, from design to operation. Materials (Basel, Switzerland). https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8540435/Sikra, S. (2020, July 22). How does construction impact the environment?. GoContractor. https://gocontractor.com/blog/how-does-construction-impact-the-environment/Zalasiewicz, J., Williams, M., Waters, C. N., Barnosky, A. D., Palmesino, J., Rönnskog, A.-S., Edgeworth, M., Neal, C., Cearreta, A., Ellis, E. C., Grinevald, J., Haff, P., Ivar do Sul, J. A., Jeandel, C., Leinfelder, R., McNeill, J. R., Odada, E., Oreskes, N., Price, S. J., … Wolfe, A. P. (2017). Scale and diversity of the physical technosphere: A geological perspective. The Anthropocene Review, 4(1), 9-22. https://doi.org/10.1177/2053019616677743United Nations Framework Convention on Climate Change (2015). Adoption of the Paris Agreement, 21st Conference of the Parties. Bonn: United Nations Framework Convention on Climate Change.  https://unfccc.int/process/conferences/pastconferences/paris-climate-change-conference-november-2015/paris-agreement

Examine how governments, especially Canada, are adopting stringent measures to enhance sustainability in construction. Discover key regulatory interventions and their pivotal role in advancing global climate objectives.Governments around the world often employ soft policy tools when it comes to promoting sustainability, however, recent years have observed a shift towards stricter measures. In 2015 the UN adopted the Sustainable Development Goals, which needed to be achieved by 2030. More than halfway into the commitment, there still hasn’t been enough progress. As we approach the end of the commitment from long strides governments are now sprinting towards sustainability. We expect more robust and stricter regulations around sustainability. According to a recent S&P report, hard-to-abate sectors such as the steel and cement industry can expect regulations by the end of 2024. Around 60% of the nations consider energy efficiency of the built environment in their NDCs according to the UNEP 2022 global status report for buildings and construction. IEA highlights that the efforts are not on track, despite the commitments. It is expected that 82% of the population will reside in countries without building codes, raising concerns over government efforts so far. The Canadian government is considering a sustainable and affordable built environment in its emission reduction strategy for 2030. It also outlines in its NDC the importance of achieving energy efficiency in building construction. Canada has employed multiple tools to achieve sustainability in the built environment such as the implementation of building codes and energy regulations. These tools are considered among the most effective climate policies according to IPCC. Following are the four key regulatory interventions by the government of Canada to promote green building and sustainable construction.NATIONAL BUILDING CODES: Canadian Centre of Research published the National Building Code (NBC) revised in 2020, the code lays out the technical, structural and design guidelines for new building construction as well as renovation and demolition activities. The new building code includes 280 technical revisions to make the buildings more safe, accessible and energy efficient. Some significant changes include the introduction of energy performance tiers to establish a framework that promotes energy efficiency in buildings and homes. The code has incorporated the technical requirements for farmhouses. It has further provided guidelines on construction using mass timber. ENERGY EFFICIENCY REGULATIONS :The Canadian government established the Energy Efficiency Regulation 2016 to regulate the import of appliances in Canada on the basis of their energy efficiency. Specifications of the home appliances allowed are clearly laid out. The step is aimed at regulating energy consumption through electronic appliances, ensuring a resilient and sustainable economy. NATIONAL ENERGY CODE:The National Energy Code for Building (NECB) is another step towards improving the energy efficiency of buildings. NECB 2020 includes multiple changes such as modifying the guidelines for thermal transmittance for windows and doors as well as the allowable lighting power densities for indoor and outdoor lighting. The code incorporates a progressive tiered approach, introducing 4 tiers for new construction in provinces motivating territories to constantly aim for higher energy performance. Following are the tiers as defined by the NECB:Tier 1: Baseline targetTier 2: Improvement of 25% over Tier 1Tier 3: Improvement of 50% over Tier 1Tier 4: Improvement of 60% over Tier 1MULTIFAMILY HIGH RISE PILOT PROGRAM:A five-year pilot program launched in Ontario, it is a certification program that recognizes buildings which are 15% more energy efficient than the buildings built according to the building codes. Energy Star-certified buildings provide better HVAC heating, cooling and ventilation across all living spaces. These buildings offer an improved indoor environment due to less indoor pollution and better humidity control. Energy efficiency is achieved by improving the insulation and using Energy Star-certified appliances that use lower amounts of energy.  

References:

Nick W Kraemer, Zev R Gurwitz, Jon Palmer, Brenden J Kugle, (2024) , Credit Trends: Global Financing Conditions: Stubborn Rates Portend Slower Issuance Growth In 2023 And 2024, S&P Global https://www.spglobal.com/esg/topics/sustainability-regulation-standardsGovernment of Canada (2022), Canada’s 2030 Emission Reduction Plan. https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/climate-plan-overview/emissions-reduction-2030/plan/chapter-2.html#toc13Government of Canada (2024), Energy Star multifamily high rise pilot program. https://natural-resources.canada.ca/energy-efficiency/buildings/new-buildings/energy-starr-multifamily-high-rise-pilot-program/21966Government of Canada (2023), Canada’s national energy code. https://natural-resources.canada.ca/energy-efficiency/buildings/new-buildings/canadas-national-energy-code/20675Government of Canada (2024), Regulations Amending the Energy Efficiency Regulations. https://canadagazette.gc.ca/rp-pr/p2/2024/2024-04-10/html/sor-dors54-eng.htmlGovernmnet of Canada (2022), National Model Codes. https://nrc.canada.ca/en/certifications-evaluations-standards/codes-canada/new-latest-editions-national-model-codes-now-availableGovernment of Canada (2023), Energy Efficiency in New Buildings. https://nrc.canada.ca/en/certifications-evaluations-standards/codes-canada/new-latest-editions-national-model-codes-now-availableCanadian Commission on Building and Fire codes (2020). Building National building code of Canada. https://nrc-publications.canada.ca/eng/view/ft/?id=515340b5-f4e0-4798-be69-692e4ec423e8

Discover the transformative trends in home construction, from sustainable procurement and deep energy retrofits to modular construction and green roofs, driving environmental and regulatory resilience.The construction industry, particularly home construction, has remained largely unchanged despite significant innovations in the commercial sector. Today, as we confront the housing crisis, climate change, and regulatory challenges, the construction industry faces the critical need for adaptation and resilience. It requires a transformative approach to mitigate the regulatory and reputational risks it faces due to its significant environmental footprint. Following are some of the emerging trends that are transforming the home construction industry.SUSTAINABLE PROCUREMENT: As the shareholders are becoming conscious towards sustainability and forcing the private sector into action. Sustainable procurement is seen as a powerful tool to promote sustainability and accountability in business operations. Based on the principles of ethical sourcing of materials considering the social and environmental parameters, sustainable procurement appreciates and incentivises the suppliers and service providers that prioritize sustainability (Sourani et al, 2016). Activism and legal challenges are constantly nudging organizations to improve their value chain. Implementing sustainable procurement reduces the reputational and regulatory risks faced by the private sector. DEEP ENERGY RETROFITS:The operating carbon from buildings significantly contributes to GHG emissions. The net-zero commitments and increased housing demand are making retrofitting homes a more favourable option for consumers and the government. Retrofitting is cost-effective and elevates the aesthetics of the built space while also extending the life of the building. According to the Federation of Canadian Municipalities (FCM), simple retrofits of a single home parameter can improve energy efficiency by 15%. Deep retrofits involve the extensive overhaul of the building's system and modification of its interior configuration,  sometimes replacing the HVAC with renewable energy. Deep energy retrofits can achieve a 40% to 60% reduction in energy cost savings.MASS TIMBER: Mass timber emerged as a revolutionary construction building material. The material exhibits exceptional strength and durability. It is created with a composition of multiple wood panels combined together with the help of glue or nails, the product offers a low-carbon alternative to steel and concrete in the construction of multi-storey buildings. The recent trends show that the mass timber produced with sustainability-sourced wood sequesters a significant amount of carbon making it a popular green building material (Abed et al., 2022).  The Canadian National Building Code in its latest version has suggested guidelines for utilizing mass timber for building construction. GREEN ROOFS:Installation of a green roof can be an effective measure to reduce the urban heat island effect (Lee et al., 2014) studies have shown that growing ferns, mosses and other plants provides thermal insulation keeping the indoor temperatures cooler or warmer compared to the outside environment. Green roofs in addition to the temperature regulation provide many socio-economic benefits such as increasing the aesthetic appearance of the building, acting as a mood booster, providing foliage for ecosystem activities and helping in retaining rainwater. Installing a vegetation cover on the building roof can be an innovative solution to establish climate resilience in times of extreme weather conditions. BUILDING CERTIFICATIONS:The brand recognition of building assessment systems provides credibility to sustainable building efforts. Many independent verifying agencies certify the construction and operational performance of buildings against their established standards. Some popular standards are LEED, BOMA, Energy Star, BREEAM etc, these certifications establish trust among customers and serve as a valuable addition to the property appreciating its economic value (Cole et al., 2013).MODULAR CONSTRUCTION: In the midst of a global housing crisis, modular construction is seen as a revolutionary idea with the concept of creating ready-to-install units that can be manufactured in a factory. Implementing modular construction reduces the flow of materials, provides a controlled environment and increases the overall efficiency of the process. Manufacturing modular units reduce transportation emissions and are significantly resource-efficient compared to the conventional on-site construction method.Modular buildings offer high insulation and airtightness, with a leakage rate below 2m³/m²/hr. They are lightweight, with modular residential structures weighing less than 30% of concrete frames, leading to substantial foundation savings, especially on brownfield sites. The UK construction industry's average material wastage is 13%, whereas modular construction significantly reduces site waste, with all off-cuts recycled in the factory (Lawson et al., 2022).

References:

Sourani, Amr & Manewa, Anupa. (2016). Sustainable Procurement. 10.1007/978-1-137-34418-2_2Green Municiple Fund, Sustainable affordable housing factsheet. https://media.fcm.ca/documents/resources/gmf/sah-why-undertake-energy-efficiency-retrofits-gmf.pdfAbed, Joseph & Rayburg, Scott & Rodwell, John & Neave, Melissa. (2022). A Review of the Performance and Benefits of Mass Timber as an Alternative to Concrete and Steel for Improving the Sustainability of Structures. Sustainability. doi: 10.3390/su14095570Lee JS, Kim JT, Lee MG. Mitigation of urban heat island effect and greenroofs. Indoor and Built Environment. 2014;23(1):62-69. doi: 10.1177/1420326X12474483Cole, R. J., & Jose Valdebenito, M. (2013). The importation of building environmental certification systems: international usages of BREEAM and LEED. Building Research & Information, 41(6), 662–676. https://doi.org/10.1080/09613218.2013.802115Lawson, R.M & Ogden, R.G. (2022). Sustainability and Process Benefits of Modular Construction. https://www.arataumodular.com/app/wp-content/uploads/2022/08/Sustainability-And-Process-Benefits-Of-Modular-Construction.pdf

Explore Budget 2024’s transformative initiatives for Canadian housing, focusing on energy efficiency, innovative technologies, and strategic reforms to enhance affordability and sustainability.Transforming Canadian Housing: Government Initiatives for Sustainable DevelopmentThe Canadian government is taking significant strides to address housing affordability and sustainability through a series of comprehensive initiatives outlined in Budget 2024. These measures aim to enhance energy efficiency, support innovative building technologies, reform municipal zoning, and incentivize construction. By investing in various programs and funds, the government is addressing the pressing issues of housing supply and affordability, while also promoting environmental sustainability.CANADA GREENER HOMES AFFORDABILITY PROGRAMA substantial investment of $800 million is being allocated to the Canada Greener Homes Affordability Program. This initiative is designed to make energy-efficient homes more accessible to Canadians, thereby reducing energy costs and environmental impact. The program supports homeowners in retrofitting their homes with eco-friendly technologies, such as improved insulation, energy-efficient windows, and renewable energy sources like solar panels. By enhancing the energy efficiency of existing homes, this program contributes to lowering greenhouse gas emissions and advancing Canada’s climate goals.ENHANCING ENERGY EFFICIENCY AND BUILDING CODESAn additional $100 million is dedicated to renewing and improving existing energy efficiency programs. This funding will provide tools to building owners to enhance their properties’ energy performance. Furthermore, it will assist in the development of better building codes, ensuring new constructions meet higher energy efficiency standards. These measures are critical in reducing the long-term environmental footprint of buildings and promoting sustainable construction practices.HOMEBUILDING TECHNOLOGY AND INNOVATION FUNDTo spur innovation in the construction sector, the government is investing $50 million in the Homebuilding Technology and Innovation Fund. This fund supports the development and deployment of cutting-edge building technologies that can enhance the efficiency, quality, and sustainability of new homes. By fostering technological advancements, the fund aims to reduce construction costs and time, making housing more affordable and accessible.INCENTIVIZING CONSTRUCTION THROUGH TAX REFORMSThe government is also introducing a significant change to the capital cost allowance rate, increasing it from 4% to 10%. This adjustment is designed to incentivize builders by increasing their after-tax return on investments, thereby encouraging more construction projects. This move is expected to stimulate the housing market, accelerating the development of new homes and addressing the supply shortage.MUNICIPAL ZONING REFORMSMunicipal zoning reforms in Canada’s major cities are another crucial component of the government’s strategy. These reforms aim to simplify and expedite the approval process for new housing projects, allowing for higher-density developments. By modernizing zoning laws, the government seeks to maximize the use of available land and increase the supply of affordable housing in urban areas.CANADA HOUSING INFRASTRUCTURE FUNDA significant boost comes from the $ 4 billion Canada Housing Infrastructure Fund, which is designed to accelerate the construction and upgrading of critical housing infrastructure. This fund supports municipalities in developing essential services and facilities that accompany new housing projects. Mississauga, for instance, has received $113 million from this fund to enhance its housing infrastructure, demonstrating the government’s commitment to supporting local housing needs.Expanding Activities on Public LandsStarting in 2024-25, the government will allocate $5 million over three years to support an overhaul of the Canada Lands Company. This initiative aims to expand the company’s activities to build more homes on public lands. Additionally, federal property is being unlocked for leasing to housing providers, facilitating the construction of 100 homes at the Arbo Neighbourhood in Toronto, Ontario. This approach leverages public lands to increase the availability of affordable housing.MODULAR HOUSING PROJECTSThe government is also investing $4 million over two years, beginning in 2024-25, to support new modular housing projects on four sites, including Downsview in Toronto, Ontario. Modular housing offers a rapid and cost-effective solution to housing shortages, allowing for quick assembly and deployment of homes.MORTGAGE INSURANCE RULES AND DENSIFICATIONLastly, Budget 2024 announces targeted changes to mortgage insurance rules to encourage densification and support the efficient functioning of the housing finance market. These changes aim to facilitate the development of higher-density housing, which is crucial for maximizing land use and increasing the supply of affordable homes in urban areas.

References:

Canada Green Building Council (2024), A look at the new Canada’s Housing Plan https://www.cagbc.org/news-resources/cagbc-news/a-look-at-the-new-canadas-housing-planGovernment of Canada (2024). Federal Budget. https://budget.canada.ca/2024/report-rapport/toc-tdm-en.htmlUNFCCC (2022). Canada’s 2021 nationally determined contribution under the Paris agreement. https://unfccc.int/sites/default/files/NDC/2022-06/Canada%27s%20Enhanced%20NDC%20Submission1_FINAL%20EN.pdf