Stemming Financial Fragmentation | World Economic Forum Annual Meeting 2025

World Economic Forum 2 years ago

layersDaily Sustainability Digest

Published about 11 hours ago



Sustainable construction is facing a sharper test: reducing whole life carbon while designing buildings and infrastructure for worsening climate volatility. Low-carbon hydrogen production has doubled in a year, with investment now above $130bn, strengthening the case for decarbonising steel, cement and glass supply chains. The impact on embodied carbon in materials will depend on whether hydrogen moves from project announcements to affordable, reliable industrial supply.

For developers, contractors and clients, whole life carbon assessment, lifecycle assessment and life cycle cost are becoming essential tools for measuring the carbon footprint of construction beyond operational energy.

Climate adaptation is now central to sustainable building design and environmental sustainability in construction. Drought, wildfire damage and rising flood risk show that conventional drainage, water management and site planning are no longer fit for purpose. Sustainable drainage systems are shifting from optional green infrastructure to core resilience assets, supporting flood protection, water storage, biodiversity and urban cooling. Funding remains fragmented, creating risks for councils and developers unless sustainable design, low carbon design and resource efficiency in construction are embedded from the outset.

Coastal defence work at Ventnor highlights the growing cost and technical complexity of local resilience, with surveys, ground investigations and long-term adaptation plans replacing short-term fixes. Air-pollution concerns linked to gas turbines at a major US data centre show that digital infrastructure can undermine green construction claims if pollution, energy demand and carbon footprint reduction are not addressed at project level.

Net zero carbon buildings, net zero whole life carbon targets, BREEAM and BREEAM v7 will carry greater weight only where they are backed by robust sustainable material specification, environmental product declarations (EPDs), low embodied carbon materials and credible circular economy in construction strategies.

The sector’s direction is clear. Eco-design for buildings, energy-efficient buildings, green building materials, renewable building materials, end-of-life reuse in construction and circular construction strategies must move from best practice guidance into mainstream procurement. Sustainable architecture and low-impact construction now depend on treating carbon, water, heat, pollution and building lifecycle performance as integrated design constraints, not late-stage compliance issues.

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