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Climate Adaptation in the Real Estate, Buildings and Construction Sector: an Urgent and Necessary Shift

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Watch the overview of the first production of the GlobalABC working group on the adaptation of the buildings and construction sector to climate change, by  representatives of the Ministry of National Territory Planning, Urban Planning, Housing and City Policy – Morocco, UN environment (City division and GlobalABC secretariat), OID (Sustainable Building Observatory), AFNOR (French Normalisation Agency) and FIDIC (International Federation of Consulting Engineers). 

The built environment is particularly at risk, and as such so are the activities and people living and working  within buildings.

  • The impact of climate change on buildings is a threat to people’s health and safety.

-      Climate risks have an impact on both the structure of a building and the economic activities they host. Besides physical damages and economic operational losses, extreme events can reduce a property’s market value by 5% to as much as 20%. (UNEP FI 2018).

Adaptation paper

 

The cost of inaction will far outweigh the cost of taking action.

  • Extreme events are already a significant burden for the real estate industry.
  • The lack of adaptation of the build environment to climate change will have severe economic and social, direct and indirect consequences, as extreme weather events intensify and are becoming more frequent and temperatures rise.
  • Making infrastructures resilient can add 3% to their overall cost but has a benefit-cost ratio of about 4 to 1.
  • Climate liability is on the rise, and companies whose buildings and infrastructures are threatened by climate risks will be facing an increasing number of lawsuits (E&E News 2019).

 

In many countries, legislation, building norms and urban planning, do not integrate these future climate risks. Yet climate projections are available.

  • While all regions already face climate risks (in particular urban areas with heatwaves and coastal areas with submersion), South-East Asian, African and small island countries remain the most vulnerable, as poverty limits the capacity to act against these risks.
  • Submersion and heatwaves are the two biggest risks to combat: limiting urbanization in risk-prone areas, anticipating the increasing needs for cooling (GSR 2019) and choosing more resistant foundations, structures, and materials, are key recommendations.

 

All actors along the buildings and construction value chain therefore need to take action. Two questions emerge: how to encourage balanced decision-making in spite of uncertainty, and how to properly put together the timeline to enable the transition. (See table of challenges and recommendations by type of actors).

  • Adaptation to climate change should be integrated into both the building’s conception and the choice of its location, by:
    • Changing the organization of the building construction process: Integrating climate change adaptation into the challenges of building construction requires a systemic approach that goes beyond current practices that are often limited to short-term issues and contractual relationships.
    • Developing an extended life cycle approach: In practical terms, focusing on each phase of the extended life cycle is a first step towards establishing frameworks for action for the adaptation of buildings to climate change.
    • Changing the procurement policies: climate change risk should be attributed to the contracting party best able to manage the impacts.
  • Adapting buildings to climate change requires developing a culture of risk and improving resilience, beyond regulations. It needs to be interconnected with disaster management, whether linked to climate-related events or not. Moreover, it is necessary to pursue simultaneously adaptation and mitigation objectives, and always link the resilience of buildings and  the resilience of infrastructures.
  • Need for stakeholder engagement: Improved reporting on exposure to climate risks is a climate adaptation measure.

 

 

Specific measures are required to protect the most vulnerable populations in informal sector and assure the adaptation of the cultural sector and of heritage buildings.

 

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