The Urgency of Retrofitting Buildings for Climate Change Action

Buildings play a pivotal role in the fight against climate change. Nearly 40% of global CO2 emissions stem from buildings, underscoring the imperative to decarbonize them in order to meet science-based climate targets. Retrofitting existing buildings, which will comprise half of all buildings in use by 2050, is the key to achieving this goal. This makes retrofitting the most efficient and expedient method to decarbonize buildings and positively impact our environment.

However, research by Schneider Electric has revealed that the pace of carbon reduction is insufficient to address the urgency of meeting climate targets. In order to limit global temperature rises to 1.5°C and achieve net-zero emissions by 2050, a threefold increase in pace is necessary, with operational building emissions needing to decrease by 5% annually until 2050.

Decarbonizing existing buildings is not only crucial for reducing carbon emissions, but also for safeguarding their value and leasing potential. Failure to decarbonize poses a risk of significant asset devaluation, making buildings less attractive to potential investors and tenants. Conversely, sustainable renovations have been shown to result in substantial energy savings and a significant return on investment within a relatively short timeframe.

The most impactful approach to decarbonizing buildings involves focusing on measures with a low carbon footprint, rapid upfront emissions reduction, and low operational impact. Schneider Electric’s digital technology-first approach to retrofitting existing buildings has demonstrated significant promise, reducing operational carbon emissions by up to 42%. This modern approach is quick to implement and highly effective in terms of return on investment and lifecycle carbon perspective.

When developing a retrofit decarbonization strategy, three key categories have emerged: light, medium, and deep renovations. These categories offer varying levels of operational carbon reductions and require different levels of investment and disruption to building occupants. A comprehensive assessment and prioritization of retrofitting efforts are essential in achieving rapid building decarbonization while considering the entire building and ownership lifecycle.

Light renovations, such as digital solutions and energy consumption monitoring, can result in a 45% reduction in operational building emissions. Medium retrofits go further with onsite renewable energy solutions, battery energy storage, and microgrids, achieving reductions of up to 85%. Finally, deep renovations involving full electrification and building envelope improvements are necessary to reach net-zero carbon emissions.

Schneider Electric has collaborated with WSP, a global design and engineering firm, to quantify the impact of efficiency, electrification, and renewable energy building decarbonization retrofit options. This collaborative study aims to provide actionable insights and data-proven foundations for building owners to engage in impactful sustainability initiatives. More information on their research and white papers can be obtained by contacting Mike Kazmierczak, VP of Schneider’s Decarbonization Office, or Schneider’s Sustainability Consulting Team.

In conclusion, the urgency of retrofitting buildings for climate action cannot be emphasized enough. The science-based imperative to rapidly decarbonize buildings serves as a call to action for building owners, investors, and tenants to partake in sustainable retrofitting efforts and contribute to a more sustainable future.