How Companies are Using Carbon Pricing to Address Climate Risk and Find New Opportunities
The global construction industry is the world’s largest consumer of raw materials, and constructed entities account for between 25 and 40 percent of total carbon emissions in the world. The industry is projected to grow at 4.2 percent annually between 2018 and 2023 in terms of market value, with expansion opportunities in residential, nonresidential, and infrastructure projects. This expected growth and the imperative toward decarbonization signaled by the Paris Agreement have created the impetus for sustainable construction. Construction companies are becoming increasingly accountable for their contribution to global emissions and are facing pressure from investors, banks, regulators, contracting authorities, and consumers to mitigate their climate risk and find new solutions to reduce their carbon footprint. In response, the industry is making inroads toward addressing these concerns.