Decarbonizing India's Buildings Sector: A Key Opportunity for Climate Action

India's buildings sector is projected to be one of the largest consumers of natural resources and a major contributor to the country's carbon emissions. With buildings accounting for around one-fifth of total CO2 emissions and nearly 33 percent of the nation's energy use, the sector has huge opportunities for emissions reductions. Progressive real estate players are increasingly backing the move toward net zero with ambitious sustainability commitments, using science-based targets to reduce greenhouse gas (GHG) emissions.

Key Takeaways:

• The buildings sector is the single largest opportunity for reductions in energy consumption and GHG emissions in India, with around one-fifth of total CO2 emissions and nearly 33 percent of the nation's energy use.
• India's residential sector's overall energy use could increase eightfold in the absence of peremptory energy efficiency improvements and policy measures.
• The buildings sector is projected to emit seven times more CO2 by 2050, compared to 2005 levels, with significant impacts on climate-related risks and business risks.
• Climate-related risks will manifest as business risks, with sustainable buildings offering significant economic savings potential, including eliminating embodied carbon emissions and operational carbon emissions.
• Real estate developers can explore various pathways to achieve targeted sustainable development goals, but a powerful vision and roadmap are necessary to achieve significant GHG emissions reductions.
• The Lodha Group has established a north star goal of carbon neutrality by 2035, using the internationally recognized GHG Protocol's accounting standard for scope 1, 2, and 3 emissions.
• Successful pilot projects will provide opportunities to scale up feasible solutions and achieve significant emissions reductions for the overall portfolio of buildings.
• The use of science-based targets is becoming a mainstream business practice, with numerous real estate companies globally announcing sustainability commitments using frameworks such as the Science-Based Targets initiative (SBTi).
• Companies that commit to ambitious climate action by setting science-based targets and publicly announcing sustainability targets can drive systemic change and significantly reduce India's carbon emissions.

Statistics:

• Around 250 ancillary industries, including cement, steel, brick, timber, and building materials, depend on the real estate industry, which drives sustainability in the industries upstream and downstream in the value chain.
• About 70 percent of India's 2030 urban infrastructure is yet to be built, signaling huge opportunities to save embodied carbon emissions.
• India's buildings sector is projected to emit seven times more CO2 by 2050, compared to 2005 levels.
• The residential sector's overall energy use could increase eightfold in the absence of peremptory energy efficiency improvements and policy measures.

Sources:

• Rocky Mountain Institute (RMI)
• Lodha Group
• Science-Based Targets initiative (SBTi)
• World Green Building Council's Net Zero Commitment
• Better Buildings Partnership (BBP)
• Architecture 2030 Challenge
• RIBA 2030 Climate Challenge
• The Climate Pledge