News | March 22, 2023

Construction Industry Leaders Set Out Roadmap For Decarbonisation

Nearly 100 construction industry leaders from Europe, North America and Asia have helped set out an industry roadmap to decarbonise the construction value chain in a new report by Shell and Deloitte, “Decarbonising Construction: BUILDING A LOW-CARBON FUTURE”.

The report provides a value-chain assessment of the construction sector’s emissions and investigates the magnitude of emissions from ‘embodied carbon’. Embodied carbon emissions are associated with materials, logistics and construction activities, the most challenging aspects of construction to decarbonise, which together accounted for more than 16% of global CO2 emissions in 2020 – equivalent to five times a major sector like aviation.1

Additionally, the report provides a detailed analysis of the economic, regulatory, and organisational barriers affecting the sector’s ability to decarbonise.

To encourage progress, the report presents a roadmap to decarbonisation which contains 15 solutions that the industry needs to adopt to reach net zero. These solutions have been developed jointly with industry leaders and highlight the importance of scaling existing solutions in addition to the importance of collaboration from stakeholders across the value chain to develop new solutions. These range from measures to encourage increased investment in low carbon technologies, to upskilling workforces and knowledge sharing, and the introduction of policies and regulations to incentivise both the supply and demand of sustainable construction practices and solutions.

Raman Ojha, Vice President Shell Construction and Road, said: “The sector needs to start by accelerating the use of solutions that are available today while creating the conditions required to incentivise action and kickstart the adoption of new technologies. Everyone across the value chain has an important role to play – Shell is ready to work together with its partners across the sector to develop low-carbon construction solutions and encourage more decarbonisation initiatives.”

‘Decarbonising Construction: Building a Low-Carbon Future’ also emphasises the need for clear roles across the construction value chain, with all parties taking responsibility for aspects that they can directly influence. For example, construction companies can create demand signals for low carbon materials, and regulators, financiers, and asset owners can help create the incentives required for investment. Many of the solutions require participation from multiple stakeholders - with greater collaboration cited as key to decarbonising construction.

Download "Decarbonising Construction: BUILDING A LOW-CARBON FUTURE” at
[https://www.shell.com/business-customers/construction-and-road/decarbonising-construction]

Shell’s net carbon intensity
Also, in this content we may refer to Shell’s “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target
Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Source: Shell