Incorporating Sustainable Energy and Decarbonizing the Real Estate Sector: A Path Forward for India

As we face the escalating crisis of global warming, the real estate sector has a significant role to play in reducing carbon emissions. As the Managing Director of Asset Deals , a leading real estate brokerage firm in Gurgaon, I am committed to promoting sustainable practices in the building sector. This article explores the concept of embodied carbon in construction and the incorporation of sustainable energy in real estate, with a focus on the Indian context.

The Intergovernmental Panel on Climate Change ( IPCC ) has unequivocally stated that human activities, including unsustainable energy use, land use, lifestyles, and consumption, have caused global warming of 1.1°C. Buildings were responsible for almost 40% of global energy-related carbon emissions in 2020, with 28% from operational emissions and the remaining 11% from materials and construction, known as embodied carbon.

Embodied carbon refers to the greenhouse gas emissions arising from the manufacturing, transportation, installation, maintenance, and disposal of building materials. Operational carbon refers to greenhouse gas emissions due to building energy consumption such as lighting, heating/cooling, and other operations. The embodied carbon can account for as much as half a building's lifetime environmental impact.

Every building comes with a large amount of embodied carbon. Raw materials, such as steel, concrete, aluminum, and insulation, are some of the major contributors to these emissions. Unlike the operational emissions, most embodied carbon is incurred upfront at the construction stage. With housing requirements projected to double by 2060, thanks to increasing urbanization and population growth, there is a renewed call to find solutions to reduce embodied carbon.

Various construction methods have different carbon footprints. For example, timber (especially recycled or sourced from sustainably grown forests) has a lower carbon footprint than concrete or steel construction. Additionally, using recycled and low-carbon materials—such as recycled aggregates in concrete, fly ash (coal combustion residue from power plants), and ground granulated blast furnace slag (GGBFS) as cement replacement—and reducing construction waste can help lower the carbon footprint.

Life Cycle Assessment (LCA) software tools, combined with large materials property databases that provide reliable embodied carbon figures, are now increasingly more sophisticated and readily available. Thus, it is easier now to calculate the embodied carbon of a building upfront so that steps can be taken to minimize it.

There are several ways to reduce embodied carbon emissions in construction. Besides the ever-relevant principle of the 3Rs—Reduce, Recycle, and Reuse—innovative technologies to help reduce embodied carbon emissions are emerging. Some prominent examples are Lc3 cement, which is made from calcined clay and lime; green hydrogen-based steel; 3D printing of buildings using sustainable materials; and incorporating carbon-capture technologies into concrete production.

Several Indian companies are pioneering low-carbon footprint construction and green building materials, leading to better repair and maintenance. Here are a few examples:

JK Laxmi Cement plans to achieve its net zero emissions target by 2047 using LC3 cement and other technologies. LC3 cement reduces the clinker factor in cement by 50% and the carbon footprint by 40%.

Indian steel manufacturers are exploring the production of green hydrogen-based steel, aligning with global trends to reduce carbon emissions.

The Indian Green Building Council (IGBC) has licensed the LEED standard from USGBC - LEED Green Associate (GA) and LEED AP , providing a structure for Indian buildings to achieve Green Rating. Rating systems are introduced and improved yearly, guiding Green Building and companies to focus on Renewable sources, which will directly reduce GHG emissions by almost half.

Companies like RaSpect AI provide AI-powered drone inspection of infrastructure to provide safe, efficient, and inexpensive automated inspection, leading to better maintenance and longer service life, which is also an important strategy to bring down the whole-life embodied carbon footprint.

Alternative bricks and blocks, such as pressed clay blocks, fly ash bricks, aerated concrete blocks, and those made from biomaterials like sugarcrete and hempcrete, could play an important role in reducing the carbon footprint of construction.

However, it's important to be aware of the 'Cobra Effect', a term that refers to well-meaning policies yielding unintended consequences. Today’s policies pushing for efficiency and renewable energy have yielded good results in terms of new technology. But they have also helped increase consumption, creating more emissions rather than reducing them.

It's time to re-examine the carbon challenge afresh. For instance, instead of Reduce, Recycle, and Reuse, we should adopt Replace, Remove, and Recover as core principles. Also, measuring efficiency isn’t enough to reach net zero emission goals. A far better approach is to replace the culprit, which is a fossil fuel, and replace it with zero-carbon alternatives.

As the Managing Director of Asset Deals, I am committed to promoting these sustainable practices in the building sector. We have the opportunity to make a significant impact on reducing carbon emissions, and I believe that with concerted effort and innovative thinking, we can meet this challenge head-on.

Several Indian startups are working on sustainable construction, creating innovative products that recycle many forms of waste to make building materials that are efficient, affordable, and environment-friendly. These companies also help to combat plastic pollution, water pollution, land pollution, and air pollution and work towards building a vibrant circular economy for the country. Some of these startups include GreenJams, which creates carbon-negative building materials from crop residues such as paddy straw, cotton stalks, and bagasse, and Angirus, which produces eco-friendly and sustainable building materials.

Indian companies such as Bamboo House India are pioneering the use of bamboo in construction. The company uses bamboo to construct houses and other structures, providing a sustainable and affordable alternative to traditional building materials.

Another innovative Indian company, ReMaterials , has developed a modular roofing system made from recycled waste materials. The system, called ModRoof, is designed to replace the corrugated metal and cement roofs commonly found in slums and low-income housing. It provides better insulation and durability than traditional materials, improving living conditions and reducing energy use.

In the realm of sustainable construction, 3D printing also holds great promise. By using this technology, builders can create complex structures with less material waste. An Indian company, Tvasta , is pioneering the use of 3D printing in construction. The company has developed a 3D printer that can print a single-story building in just five days.

While these technologies and practices can significantly reduce carbon emissions in the building sector, it's important to remember that they are just one part of the solution. To truly achieve net-zero emissions, we need to transform the way we design, build, and operate buildings. This includes rethinking our approach to urban planning, promoting compact, walkable communities with access to public transportation, and prioritizing retrofitting existing buildings over new construction.

Considering the large-scale infrastructure investments and residential requirements, it is highly relevant for Indian infra companies and real-estate builders to leverage the Indian startups working on sustainable construction. As a large part of the real estate development will happen for residential purposes, it is also important to look at other ancillary parts of making a house, like furniture items, fixtures, and paints among others.

While sustainable construction in India is still at a nascent stage, there is hope. The Indian government is pushing hard for the country's construction industry to shift to more environmentally friendly building materials. Today, green building ratings have a low focus on embodied carbon emissions, giving an incomplete impression of the sustainability of construction. However, there is a growing awareness of the need to include embodied carbon in green building ratings in India, which will help to drive the adoption of sustainable practices in the building sector.

In conclusion, the real estate sector has a significant role to play in reducing carbon emissions. As the Managing Director of Asset Deals, I am committed to promoting sustainable practices in the building sector. With concerted effort and innovative thinking, we can meet this challenge head-on. By adopting sustainable practices, we can reduce the carbon footprint of buildings and contribute to a cleaner, greener, and more sustainable future.

By Viineet Chellani , Managing Director, Asset Deals