rethink sustainability

    How can the building sector become low-carbon?

    How can the building sector become low-carbon?

    Article published on Le déCLIC® responsable in partnership with Le Figaro on 28 September 2023

    The building sector is responsible for 23% of France’s greenhouse gas emissions and accounted for over 43% of its energy consumption in 2022, according to the country’s Ministry for the Energy Transition. Reducing these figures is a major challenge that needs to be tackled on two levels: design and construction.

    People spend 90% of their day indoors, according to a YouGov survey of 16,000 people in 14 countries across Europe and North America.That’s 21 out of 24 hours, and during that time they’re using energy to cool down and keep warm, but also to power various appliances in their house, office, gym, etc. Joining this list is now the electric car, which is usually charged at home or the workplace.

    Sylfen aims to save 70-80% of the energy produced by buildings, whether it comes from solar panels, wind turbines, hydraulic systems or biogas plants

    All of this has implications. “It’s absolutely essential to control the energy mix,” says Nicolas Bardi, CEO of Sylfen. The start-up based in Isère aims to achieve this by focussing on what it considers to be the weak point of the energy chain – storage. “Let’s take the example of the use of photovoltaic panels. Even if the system collects 100% of the energy required to supply the building, only a third is actually used. The other two-thirds will be returned to the grid because it cannot be stored. Our patented lithium battery and hydrogen storage system enables us to supply the maximum amount of energy to a building using locally available energy.”

    Sylfen aims to save 70-80% of the energy produced by buildings, whether it comes from solar panels, wind turbines, hydraulic systems or biogas plants. “Hydrogen can be used to store large quantities over extended periods of time and lithium can be used to store smaller quantities but with very rapid yields,” adds Bardi. If this solution proves effective for the sector, the challenge will be to improve the lithium extraction process, which requires a lot of energy and water and poses social and environmental problems in certain countries. Another project for the future is to optimise hydrogen storage, which currently requires considerable technological and financial resources.

    Read also: Architects take inspiration from nature to build a sustainable future

     

    Renewable heat

    Thermal insulation and the use of alternative energy sources are also serious avenues that are being explored. The French government has allocated almost EUR 1 billion to its Agency for Ecological Transition (ADEME) and is using this to finance the Fonds Chaleur heat fund, which is assisting a large number of companies and industries looking to implement renewable heat projects. This has led to an extra 3.5 TWh of renewable energy being produced each year. France generated a total of 445 TWh of electricity in 2022, a decline of 15% compared with 2021 (522 TWh).

    Energy is not the only challenge facing the building sector. Its choice of materials is also a critical issue

    Recycling materials

    Energy is not the only challenge facing the building sector. Its choice of materials is also a critical issue. Building activities are still largely dependent on steel and cement, which are difficult to decarbonise.

    But the renovation sector is booming, and with a value of EUR 40 billion per year already accounts for a third of France’s construction market. “On one building site we reused 40,000 m2 of flooring that was initially destined for disposal,” Bardi says. The challenge is enormous, yet rethinking existing materials while taking into account an integrated upcycling principle makes it possible to speed up the environmental transition without waiting for or excluding the use of new, more sustainable materials – even if the latter are becoming increasingly available.

    ... the renovation sector is booming, and with a value of EUR 40 billion per year already accounts for a third of France’s construction market

    Towards a revolution in the building sector

    Transformation of the building sector is being encouraged by the European Union and, in some cases, imposed by regulatory changes. The REPowerEU plan envisages an injection of EUR 300 billion to diversify Europe’s energy supply. The use of renewable energies, especially solar power, is one of the pillars of its strategy. Over 24% of EU electricity consumption could eventually be covered by solar panels installed on roofs. This would exceed natural gas’s current share (15.8%) of the energy mix. The shift should come as electrification of the global economy aims to increase from 20% now to 70% by 2050.

    To achieve this transformation, a directive will soon require the installation of solar panels on the roofs of all residential, public and commercial new builds in Europe. This will later be extended to include existing large public and commercial buildings. In tandem with this major step, new environmental legislation, RE2020, is revolutionising the building sector. It goes far beyond previous standards and takes into account not only the energy performance of buildings, but also their environmental footprint at a global level.

    ZNA: revisiting town planning rules

    The RE2020 rules have been in force since 1 January 2022 for new builds. They reflect a more holistic understanding of the environmental challenges linked to town planning and construction. In this drive towards sustainability, the BBCA (Development of Low Carbon Building) label stands out: it recognises real estate projects and promoters who work to limit greenhouse gas emissions over a building’s entire life cycle. This approach encourages the design and construction of more environmentally friendly buildings, from individual offices to entire districts, whether new or renovated.

    Read also: Betting everything on “net zero” – interview with Thomas Hohne-Sparborth

    Finally, the concept of zero net artificialisation (ZNA) is emerging as a must for more sustainable regional development. This initiative is based on a change to town planning rules to give preference to urban regeneration and denser housing, while breathing new life into derelict artificial areas.

    The challenge is considerable: if no concrete measures are taken, almost 280,000 hectares of natural space might be covered by man-made surfaces by 2030. The global goal of ZNA is to achieve neutrality in terms of artificialisation by 2050. The first stage is to halve the urbanisation and conversion rate of natural, agricultural and forest spaces in the 2020s compared with the previous decade. These combined efforts are a sign of growing environmental awareness and mark the beginning of a new era of action within the European Union, which is determined to forge a more sustainable future for its citizens and for the planet.

    Important information

    This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.

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