The built environment is expanding rapidly, often outpacing the natural world. Did you know that every 10 seconds, the building industry uses enough concrete to fill 19,000 bathtubs? Concrete is the second most consumed material on Earth after water. Most of this growth is happening in Asia, where an additional 1.2 billion people are expected to move to cities in the next 20 years.
Asia holds a key position in the World Green Building Council’s goal to cut carbon emissions from buildings by 2050. This region accounts for about half of the global real estate market and is projected to add over 70 billion square meters of new real estate in the next two decades.
Decarbonizing Asia’s buildings could unlock a huge opportunity, estimated at $47 trillion, if 75% of new constructions and retrofits are made eco-friendly. Vinamra Srivastava, Chief Sustainability Officer of CapitaLand Investment, and Giovanni Cossu, Head of Sustainability for CapitaLand Development, recently shared their insights on a podcast about the challenges and opportunities ahead.
“Boring is beautiful. Many solutions in urban development aren’t glamorous, but they get the job done.” — Vinamra Srivastava
In the podcast, they discuss several key topics:
- The current state of net zero in the Asia Pacific region
- CapitaLand’s progress toward net zero
- Challenges related to embodied carbon
- Decarbonizing multinational operations
- Effective low-carbon solutions for the built environment
- The need to consider building less for true decarbonization
The conversation starts with Vinamra’s surprise at how few buildings are net zero aligned. He mentions that while Singapore boasts 80-90% green-certified buildings, many East Asian cities lag behind, with only 20-30%. This creates a significant opportunity for growth.
Asia is urbanizing rapidly. This presents a unique chance to incorporate green features into new developments rather than retrofitting older buildings. Many countries in the region also have abundant renewable energy resources, which could help accelerate this transition. For instance, India’s renewable energy market has exploded in the last few years thanks to supportive policies.
Singapore’s carbon tax serves as an example of effective policy action. More countries in Asia are starting to explore carbon markets as well, highlighting the region’s potential for innovation and corporate responsibility in decarbonization.
However, Vinamra also notes that challenges persist, especially in balancing financial viability with sustainability goals. Companies must navigate different regulations and stakeholder requirements, making the path to net zero more complex.
Giovanni adds that the sustainability approach varies from country to country, particularly in a diverse region like Asia. Countries with strict regulations, like Singapore, contrast sharply with developing nations such as Vietnam and Indonesia, where sustainability leadership requires more risk-taking.
Decarbonizing buildings revolves around selecting low-carbon materials and enhancing designs to reduce emissions. Efforts are underway to shift away from simply operational carbon considerations to also include embodied carbon, which refers to the emissions associated with the materials used in construction.
CapitaLand is aiming to achieve substantial sustainability goals. Their 2030 Sustainability Master Plan sets targets for reducing energy and water usage, increasing recycling rates, and ensuring that all buildings are green certified. While they have made headway, challenges remain in achieving 45% renewable energy use by 2030.
The complex nature of CapitaLand’s diverse portfolio across different sectors and regions complicates these efforts. The company must balance various requirements, stakeholder expectations, and the need for profitable growth, all while reducing carbon emissions.
Both Vinamra and Giovanni emphasize the importance of innovation in achieving their decarbonization goals. CapitaLand runs a global challenge to source innovative climate technologies. Solutions emerging from this initiative include lightweight solar panels, energy-efficient cooling solutions, and smart building technology that helps to reduce energy use.
In the end, the discussion highlights the balance between economic growth and sustainability. Asia has the opportunity to demonstrate that it is possible to pursue both concurrently, paving the way for a greener future in urban development.
