McKinsey Report: construction can reduce emissions by 50% with existing tech

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Construction workers talking on building site The report identifies what it says are 30 of the largest decarbonization opportunities available to built environment in the near term

Construction could reduce emissions by more than 50% by 2030 with currently available technologies, according to a new report from McKinsey & Company.

The report also looks at over 1,000 potential decarbonization levers for the built environment and identifies what it says are 30 of the largest opportunities available to the built environment in the near term.

Another striking aspect of the report is its estimation that offsite construction will help reduce construction time by approximately 20% and that modular construction in European and US markets can potentially create US$22 billion in annual savings.

“The report highlights potential pathways to decarbonize 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 & Company.

“We have aimed to focus on some of the largest opportunities that industry players could realise by scaling production, building future operating models, and developing skills and expertise across the value-chain.”

To capture economic benefits, industry players will likely need to act decisively to increase production of technologies and materials, build service companies, unlock supply chains, and develop the necessary operational skills across the value chain to implement solutions at scale.

The report, Building value by decarbonizing the built environment, adds that heat pumps could abate up to 60% of heating and cooling emissions for most building types but the heat pump supply chain currently is experiencing manufacturing and supply chain bottlenecks that providers would have to solve.


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Andy Brown Editor, Editorial, UK - Wadhurst Tel: +44 (0) 1892 786224 E-mail: [email protected]
Neil Gerrard Senior Editor, Editorial, UK - Wadhurst Tel: +44 (0) 7355 092 771 E-mail: [email protected]
Catrin Jones Deputy Editor, Editorial, UK – Wadhurst Tel: +44 (0) 791 2298 133 E-mail: [email protected]
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