Sustainable finance plays a crucial role in decarbonizing the construction industry by providing the necessary capital, incentives and frameworks. This is essential for mitigating climate change and transitioning to a more sustainable and resilient built environment. I’ll share some examples.
Firstly, sustainable finance encourages the development and adoption of sustainable construction solutions and technologies. This includes innovations such as Holcim’s low-carbon cement ECOPlanet or our low-carbon concrete ECOPact, as well as our proprietary ECOCycle® recycling technology platform. These advancements contribute to lower emissions related to the construction and operation of buildings.
Secondly, sustainable finance can incentivize the construction of energy-efficient buildings through green building standards and financing options. Energy-efficient buildings use less energy for heating, cooling and other operational needs, which reduces their carbon footprint over their lifespan.
Lastly, governments and regulatory bodies are implementing policies through carbon pricing mechanisms and incentives to promote sustainable construction and business practices, thereby reducing carbon emissions. Sustainable finance can help businesses and projects comply with these regulations and access financial incentives – as we did at Holcim with the development of carbon capture investments partially funded through the EU Innovation Fund in order to capture the remaining CO2 emissions from our operations in Europe.