Low-carbon roadmap for the Finnish construction industry

The construction industry is already doing market-driven successful GHG emission reduction work. Regulation must be encouraging and material and technology neutral. The energy efficiency of existing buildings needs to be significantly improved. This requires a great deal of additional investment in renovation.

Summary

In the built environment, the majority, about 65%, of emissions are still generated by energy consumption during the use of buildings. Reducing the energy consumption and emissions of existing buildings, for example through energy renovations and renewal of heating methods, has the greatest potential for reducing emissions. Releasing low-emission energy for other uses is also a carbon handout to energy-intensive industries.

In terms of the construction phase, technological development in the manufacture of building materials, such as cement and steel, which remain in high volumes of use, is of great importance. Individual material solutions do not have a significant impact considering the whole.

In the built environment about 65% of emissions are still generated by energy consumption during the use of buildings

The industry is already advancing rapidly, and new solutions and services are available. Achieving the greatest emission reductions requires determined action from all parties, including the public sector, which plays a pioneering role.

The state must reform the sector’s low-carbon regulation consistently and in such a way that the requirements are feasible. Regulation must be material- and technology-neutral and encourage real emission reduction measures.

Background

The construction industry’s roadmap 2024 updates the current state of GHG emissions in the construction industry and the development of emission reductions in scenarios and describes the regulation guiding the low-carbon nature of the construction sector. The roadmap also describes the implementation of emission reduction measures between the roadmap processes and develops a method for monitoring emissions development as a follow-up to the roadmap work. A significant driver affecting emissions from the built environment is the predicted, significant growth of the building stock.

The built environment is of great importance to society and Finland’s emissions. The real estate and construction sector accounts for approximately 83% of Finland’s national wealth and 17% of Finland’s GDP. In addition, the real estate and construction sector accounts for about 35% of Finland’s energy consumption. In addition to consuming energy, the built environment can also produce it.

The roadmap for the construction industry describes the regulation of the sector and the impact of changes in the regulatory environment on the construction sector. The low-carbon construction sector is guided by many policy measures at both national and EU level. Essential steering instruments include, for example, Energy Performance of Buildings Directive (EPBD), the Construction Products Regulation (CPR) and the national Construction Act.

The current state of GHG emissions from the built environment

In the calculation year of the roadmap update in 2021, emissions from the built environment amounted to approximately 14.5 MtCO2e, most of which, approximately 9.3 MtCO2e, came from energy consumption during use. The rest of the emissions came mainly from construction materials, site operations, logistics and waste. In 2021, emissions from the built environment have decreased by 15% from the 2017 level. Emissions from energy consumption during use have decreased by 29% over the same period. The sub-sector of buildings and building construction covers 86% of emissions in the construction sector and infrastructure construction 14%. Emissions from buildings and building construction have decreased between roadmap processes, while emissions from infrastructure construction have increased mainly due to the increase in its volume. The increased emission figures may also have been influenced by more comprehensive and accurate initial data for the assessment. In general, emissions from construction activities (excluding emissions during use) from both building and infrastructure construction have increased to approximately 3.1 MtCO2e, i.e. approximately 18% of the previous roadmap work due to the growth in the volume of new construction. The majority of emissions from construction activities, 78%, come from building materials.

Figure. Carbon footprint of built environment. The year of study 2021was selected because of the best available complete background data.

Emission reduction measures

Emissions from the built environment have decreased mainly as a result of decarbonisation in electricity and district heat production. In addition, construction companies have taken active measures to reduce their emissions. Some measures have been introduced more than others, but emission reduction measures are becoming mainstream by 2035 based on companies’ low-carbon plans. In particular, the utilization of renewable energy or electrification as well as energy efficiency measures have been common ways to reduce companies’ emissions.

In general, the 2024 roadmap highlights 13 measures that have been subject to impact assessments. The measures fall into three categories: low-carbon materials, other construction solutions and the use of buildings. The use of low-carbon materials, the reuse of structures or other construction products and extending the life cycle of buildings and structures are essential ways to reduce emissions from the construction sector. Of the main building materials, concrete, steel and wood can offer low-carbon solutions. Other construction solutions include increasing low-carbon site operations, favoring emission-free transport, and managing aggregate and/or soil masses in infrastructure construction. Emissions from the use of buildings, on the other hand, can be reduced by implementing improvements in thermal insulation, energy efficiency measures in building technology, introducing emission-free building-specific heat production systems and utilizing demand response. The impacts of emission reduction measures have been extensively assessed in terms of costs, emission reduction and carbon handprint potential, the need for critical materials, and social and biodiversity impacts, among other things.

Future activities and needs

The realization of emission reductions requires certain changes and actions from the operating environment. The Confederation of Finnish Construction Industries RT wants to promote the creation of an enabling operating environment through stakeholder cooperation. The means identified by the Confederation of Finnish Construction Industries RT to support the low-carbon transformation of its member companies include information sharing and training. Clients, of whom the public sector as a forerunner can enable better utilization of low-carbon solutions and services, also play a significant role. As part of the development of an enabling operating environment, the Confederation of Finnish Construction Industries RT also considers it important to influence regulation in the sector and to support knowledge-based decision-making. In addition, regular monitoring of emissions trends supports the implementation of low-carbon measures by demonstrating the progress made possible by action. The roadmap for the construction industry therefore recommends the creation of a monitoring method to ensure the progress of the low-carbon process.