OPEC Fund Quarterly - 2024 Q4

HOUSING ENVIRONMENTAL IMPACT

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Addressing the impact of housing on the environment is crucial for climate action in the global quest to meet the targets of the Paris Agreement By Axel Reiserer, OPEC Fund

S ince mankind has become sedentary, it has begun to build shelters for itself. Their design has always been determined by the climate, whether they were to provide protection from the cold or heat, wind or storm. The US architect Philip Johnson once said: “All architecture is shelter.” Today, humanity has reached a point where the opposite threatens to become the case: The task of how houses can protect people from the environment must now be supplemented by the task of how people can protect the environment from their houses as studies such as the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (2022) show. According to this authoritative examination, total greenhouse gas (GHG) emissions in the building sector reached 21 percent of global GHG emissions in 2019. Of this, 57 percent were indirect CO2 emissions from offsite generation of electricity and heat, followed by 24 percent of direct CO2 emissions produced on-site and 18 percent from the production of cement

and steel used for the construction and/ or refurbishment of buildings. Globally, buildings account for almost a third of CO2 emissions and just over a fifth of GHG emissions. Houses are recognized as major causes of emissions and cities are responding. Meanwhile, demand for new accommodation is rapidly, and massively, rising. According to UN- Habitat, the United Nations program for human settlements and sustainable urban development, around 1.6 billion people worldwide lack adequate housing today. By 2030 this could rise to 3 billion. To meet this demand, the world needs to build 96,000 affordable homes every day. However, in many countries the population grows faster than homes are being built. Take, for example, the USA: While the US population grew by more than 3 million people in the last 20 years, home construction decreased by 55 percent nationwide. If the largest economy in the world cannot cope, the prospects for developing countries are even more daunting. The world is witnessing a massive shift towards

urbanization (see interview Oliver Harman, page 18), with 6 out of 10 people expected to live in urban areas by 2030. Over 90 percent of this growth will take place in Africa, Asia, Latin America and the Caribbean. A survey by the Thomson Reuters Foundation, a charity promoting media freedom, inclusive economies and human rights, illustrates what this means for Africa: At current rates of population growth 70 percent of the buildings that will be needed in Africa in 2040 are yet to be constructed. Some see this as an opportunity: “Just like with the mobile phone, we don’t have to go through the landline just because the Global North did

Personalized Living Spaces IoT systems can learn from user behavior and preferences to create personalized living environments. This can enhance the quality of life for residents by providing comfort and convenience tailored to their needs.

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