A bulldozer is being used to demolish the illegal structures of the residence of Javed Ahmed, one … [+]
As the demand for the built environment increases, the inevitable question becomes whether we demolish existing buildings to make way for new developments, or try wherever possible to use existing structures and materials.
A recent analysis by McKinsey and the World Economic Forum highlighted the vital role of circular renewal in conserving natural resources, meeting decarbonisation targets and unlocking other crucial opportunities.
According to the study, retrofitting offers a cost-effective alternative, reducing emissions by 75% and lowering costs by 77% compared to building new structures.
And to meet global net zero goals, he argues that the retrofit market needs to grow from $500 billion today to roughly $3.9 trillion by 2050.
He argues that meeting this target could result in a reduction of 500 million metric tons of carbon emissions per year and divert $600 billion worth of materials from landfills by that date.
McKinsey partner and co-author of the report, Sebastian Reiter, said retrofitting existing building stock represents an “economically significant opportunity” and is a “$1 trillion market” in an interview.
Reiter said that retrofitting could help reduce global consumption of raw materials, the use of materials in the sector has tripled over the past 50 years.
He added that in 2020 alone, the built environment consumed 30 billion tonnes of materials and could help the transition to renewable energy by ensuring buildings are more energy efficient.
World Economic Forum executive committee member Fernando Gómez said we need sustainable ways to respond to a growing global demand for the built environment and “doing it only through new construction is not an option” in an interview.
Gómez added that much of the renovation work will be around insulation and meeting new energy efficiency standards.
“People will also want to live and work in a place that actually helps them with their sustainability commitments,” he told me.
Gómez said there is also a growing awareness about the value of building materials and how to protect that value over longer periods of time, as opposed to tearing down existing buildings and starting over.
He added that rebuilding on a larger scale will also require new ways of thinking about technology and a more systematic approach to the built environment.
“We will have to create infrastructure for recycling and reuse, which currently do not exist. Financial institutions will also need new ways of thinking about asset value.”
McKinsey Senior Partner Jukka Maksimainen with retrofitting, the carbon footprint is significantly smaller and construction times are also shorter.
Maksimainen added that it is estimated that around 80% of the building stock of 2050 already exists today, and a large part of it will need to be reused or remodeled to meet future needs.
Arup’s global head of circular economy services, Martin Pauli, said that embracing circulation through renewal could play a transformative role in addressing challenges such as climate change in an email.
Paul added by upgrading existing building stock, energy consumption can be reduced and people can adapt to future higher temperatures without relying heavily on the carbon-intensive materials required for new construction.
“However, the retrofit still requires materials, such as insulation, concrete and steel, to increase energy efficiency and structural integrity,” Pauli said.
“The key lies in sourcing these materials sustainably and reusing what we already have. Businesses and governments are beginning to recognize the potential of this approach, but it is imperative to make it the global standard.”
And Timber Development UK’s sustainability director Charlie Law said it will be important to keep building materials in use and performing at the highest possible value for as long as possible in an email.
Law added that this means choosing materials that are durable and demountable so that they can be used and reused, repeatedly for perhaps hundreds of years.
“Wood is a natural choice for these types of projects,” he said.
“Also, due to its light weight, it can be used to extend the floor plan of an existing structure upwards without additional structural changes to the existing frame, increasing the overall value of the property.”
