3.1

3.1 Mobility, buildings and the wider built environment are a key challenge for sustainability

Transport and residential property together account for nearly 30% of global carbon emissions.

Figure 71: CO₂ emissions by economic sector, share of total
Electricity/heat productionTransportOtherManufacturing/constructionResidential05%10%15%20%25%30%35%40%45%
Share of total
Figure 72: CO₂ emissions by the transport sector, share of total transport emissions
CarsTrucksAviationMarineRailways05%10%15%20%25%30%35%40%
Share of total
Buildings and built environments are crucial in fostering well-being
Figure 73: Share responding “yes” to questions about working in LEED-certified buildings
Satisfied on the jobBoosts productivity/happiness010%20%30%40%50%60%70%80%90%100%
Figure 74: Relative risk of developing conditions as a result of living with little green space
Eating disordersBipolar disorderCannabis abuseAlcohol abuse0.8x0.85x0.9x0.95x1x1.05x1.1x1.15x1.2x1.25x

Estimates above 1x indicate higher risk of developing a given psychiatric disorder for children living among little green space compared with children living with lots.

Spotlight topics

The COVID-19 pandemic has hugely disrupted patterns of mobility but long-term shifts are as yet unclear

The global aviation industry has collapsed, while people are making fewer shorter trips as they practise social distancing.

Figure 75: Global flights in March, 2017-20
123456789101112131415161718192021222324252627282960,00080,000100,000120,000140,000160,000180,000200,000
Day of March
2017
2018
2019
2020
Figure 76: Transport use, UK, March-April 2020
Percentage of regular use
18 Mar 202019 Mar 202020 Mar 202021 Mar 202022 Mar 202023 Mar 202024 Mar 202025 Mar 202026 Mar 202027 Mar 202028 Mar 202029 Mar 202030 Mar 2020 1 Apr 2020 2 Apr 2020 3 Apr 2020 4 Apr 2020 5 Apr 2020 6 Apr 2020 7 Apr 2020 8 Apr 2020 9 Apr 202010 Apr 202011 Apr 202012 Apr 202013 Apr 2020010%20%30%40%50%60%70%80%
All motor vehicles
TfL Bus
Bus (excl. London)
National rail
TfL Tube

Spotlight topics

Cities have been exploring new transport options. Will these changes persist?

Car use in China has returned to normal levels, but public-transport use has not. Milan is widening pavements and offering more cycling lanes to maintain social distancing. In London, Mayor Sadiq Khan has announced sweeping changes to mobility.

Figure 77: Subway passenger volumes, China, 2018-20
Persons/day
-10-50510152025303540455055606570758085909510010505m10m15m20m25m30m
Days before (-) or after (+) Chinese New Year
2018
2019
2020

Seven-day moving average

Public transport must only be used when absolutely necessary – as a last resort. Many more Londoners must now walk or cycle. Everyone who can work from home must continue doing so for the foreseeable future. We must all spend more of our leisure time in our local areas to avoid unnecessary journeys. Londoners who can only get to work on rail must now walk or cycle from rail stations rather than using the tube or bus.

Sadiq Khan, May 2020

New cycle lanes in Madrid, May 2020

Francesco Prandoni/Getty Images

Spotlight topics

The consequences of the pandemic are likely to disrupt the economics of buildings
Figure 78: Decline in property values, US, since February 2020
Senior housingStudent housingMallsOfficeApartmentSingle-family rentalsCell towerData centre-50%-45%-40%-35%-30%-25%-20%-15%-10%-5%0
Change in value
Figure 79: Visits to different sorts of buildings, US, February-June 2020
15 Feb 202016 Feb 202017 Feb 202018 Feb 202019 Feb 202020 Feb 202021 Feb 202022 Feb 202023 Feb 202024 Feb 202025 Feb 202026 Feb 202027 Feb 202028 Feb 202029 Feb 2020 1 Mar 2020 2 Mar 2020 3 Mar 2020 4 Mar 2020 5 Mar 2020 6 Mar 2020 7 Mar 2020 8 Mar 2020 9 Mar 202010 Mar 202011 Mar 202012 Mar 202013 Mar 202014 Mar 202015 Mar 202016 Mar 202017 Mar 202018 Mar 202019 Mar 202020 Mar 202021 Mar 202022 Mar 202023 Mar 202024 Mar 202025 Mar 202026 Mar 202027 Mar 202028 Mar 202029 Mar 202030 Mar 202031 Mar 2020 1 Apr 2020 2 Apr 2020 3 Apr 2020 4 Apr 2020 5 Apr 2020 6 Apr 2020 7 Apr 2020 8 Apr 2020 9 Apr 202010 Apr 202011 Apr 202012 Apr 202013 Apr 202014 Apr 202015 Apr 202016 Apr 202017 Apr 202018 Apr 202019 Apr 202020 Apr 202021 Apr 202022 Apr 202023 Apr 202024 Apr 202025 Apr 202026 Apr 202027 Apr 202028 Apr 202029 Apr 202030 Apr 2020 1 May 2020 2 May 2020 3 May 2020 4 May 2020 5 May 2020 6 May 2020 7 May 2020 8 May 2020 9 May 202010 May 202011 May 202012 May 202013 May 202014 May 202015 May 202016 May 202017 May 202018 May 202019 May 202020 May 202021 May 202022 May 202023 May 202024 May 202025 May 202026 May 202027 May 202028 May 202029 May 202030 May 202031 May 2020 1 Jun 2020 2 Jun 2020 3 Jun 2020 4 Jun 2020 5 Jun 2020 6 Jun 2020 7 Jun 2020 8 Jun 2020 9 Jun 202010 Jun 202011 Jun 202012 Jun 202013 Jun 202014 Jun 2020-50%-40%-30%-20%-10%010%20%
Retail/recreation
Workplace
Residential

Spotlight topics

3.2

3.2 Electric vehicles at a tipping point

Before the pandemic, demand for electric vehicles was rapidly growing

Plug-in vehicle sales were especially strong in the United States in 2018 and 2019. In Norway, penetration of plug-in vehicles now exceeds 50%.

Figure 80: EV sales, US, 2011-19
201120122013201420152016201720182019050,000100,000150,000200,000250,000300,000350,000400,000
Figure 81: Plug-in vehicle market share, four countries, 2012-19
2012201320142015201620172018201905%10%15%20%25%30%35%40%45%50%55%60%
Norway
Iceland
Netherlands
Sweden
In the past, declines in oil prices have led to higher sales of inefficient cars, such as SUVs

A study in the American Economic Journal: Economic Policy, co-authored by an economist at the Federal Reserve Bank of Chicago, found that a one-dollar increase in the oil price leads people to buy a car which is one-mile-per-gallon more efficient. This relationship is also suggested by the historical data.

Figure 82: Effect of $1 decline in oil price on consumers' preferences for fuel economy, US, by model specification
FirstSecondThird0-0.1%-0.2%-0.3%-0.4%-0.5%-0.6%-0.7%-0.8%-0.9%-1%-1.1%-1.2%-1.3%
Impact on average fuel economy
Figure 83: Relationship between oil price and SUV sales, 1986-2020
Value ($ or % of sales)
199020002010202020406080100120140160
SUVs as % of total sales
Oil price ($)

Spotlight topics

This time, sales of electric vehicles are holding up much better than fossil-fuel cars

Electric car registrations continued to rise in the early part of the pandemic. The top two selling car models in the UK in April were electric. So far in 2020, electric car sales in Europe were 13% of the total, double the share last year.

Figure 84: UK electric car sales, 2018-March 2020
Registrations
2019202002,0004,0006,0008,00010,00012,00014,00016,00018,00020,000
Figure 85: Europe car sales, by type, 2019-February 2020
20202019010%20%30%40%50%60%70%80%90%100%
Gasoline
Diesel
Electric

Spotlight topics

2020 was already looking like a turning point, with consumers having increasingly wide choice

Consumers already have a variety of electric vehicles to choose from, but between 2019 and 2021, the range of models is expected to double.

Figure 86: Plug-in vehicle sales, US, 2010-2020
Tesla Model 3Chevrolet VoltTesla Model SNissan LeafToyota PriusTesla Model XFord Fusion Energi020,00040,00060,00080,000100,000120,000140,000160,000180,000200,000
Total sales
Figure 87: Expected number of electric car models available in Europe in late 2019 and 2021
VolkswagenDaimlerBMWHyundai-KiaPeugeot-Citroen-OpelRenault-Nissan-MitsubishiVolvo-GeelyJaguar-Land Rover051015202530354045
Number
2021
End 2019
Electric vehicles are increasingly competitive with the internal combustion engine, with battery prices continuing to fall

Electricity is the most efficient way of powering vehicles. The price of lithium-ion batteries has collapsed. The combination of these two factors is making electric vehicles an increasingly attractive option for consumers.

Figure 88: Average prices for vehicles, by fuel, 2000-2018
$/gasoline gallon equivalent
2000200120022003200420052006200720082009201020112012201320142015201620172018$0.5$1$1.5$2$2.5$3$3.5$4
Gasoline
Diesel
Compressed natural gas
Electricity
Figure 89: Volume-weighted average lithium-ion pack price, 2010-19
2010201120122013201420152016201720182019$100$200$300$400$500$600$700$800$900$1,000$1,100$1,200

Spotlight topics

Electric vehicles are cheaper than fossil fuel cars in many countries

In the United States, it is cheaper to run an electric car than a fossil-fuel one, even in parts of the country where electricity is relatively expensive.

Figure 90: Cost of four years of ownership, UK, by car type, 2018
Gasoline VW Golf TSIDiesel VW Golf TDIPHEV VW Golf GTEBEV VW e-Golf0€5,000€10,000€15,000€20,000€25,000€30,000€35,000€40,000€45,000

Including three years tax on company-car benefit

Figure 91: Annual fuel-costs of driving a typical gasoline vehicle and a typical BEV, US, 2018
HawaiiNew HampshireConnecticutRhode IslandMassachusetts0$200$400$600$800$1,000$1,200$1,400$1,600
Gasoline cost
Electricity

Spotlight topics

The infrastructure for electric mobility is taking shape

In Britain there are now more charging locations than petrol stations, while across the world there are nearly 900,000 public electric vehicle charging points.

Figure 92: Public electric vehicle charging connectors, global, 2011-19
Number
2011201220132014201520162017201820190100,000200,000300,000400,000500,000600,000700,000800,000900,000
Figure 93: Electric vehicle charging locations and fuel stations, UK, 2012-19
Number
201220132014201520162017201820191,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
Charging stations (source: Zip-Map)
Fuel stations (source: Energy Institute)

Spotlight topics

Investment in new mobility technologies has risen fast

Investments in electrification and autonomous driving have taken off, while autotech transactions have risen sharply in recent years.

Figure 94: Number of autotech transactions by buyer group, 2014-18
Number
20142015201620172018020406080100120140160
OEMs
Autotech
Other
Tech
Financials
Figure 95: Total autotech transaction value by sector, 2014-18
201420152016201720180$2bn$4bn$6bn$8bn$10bn$12bn$14bn$16bn$18bn$20bn$22bn$24bn$26bn$28bn$30bn
Autonomous driving
Connectivity
Electrification
Shared mobility

Spotlight topics

Choices governments make in recovery packages will help accelerate, or slow the transition

We will exit this crisis, and people will no longer agree to breathing polluted air. You’ll see something that was already rising in our societies, people will come out and say ‘I don’t want to breathe this air . . . you have accepted the idea of shutting down everything to stop Covid, but now you are ready to let me go on breathing bad air.’

Emmanuel Macron

In many cities, air quality has improved during the pandemic
Figure 96: Average weekly concentration of NO₂, four cities, Feb-April 2020
NO₂ concentration, μg/cubed metre
678910111213141516510152025303540
Week of 2020
Rome
Madrid
New York
Delhi
Figure 97: Average daily NO₂ readings, UK, March-April 2020
NO₂ concentration, μg/cubed metre
17 Mar 202018 Mar 202019 Mar 202020 Mar 202021 Mar 202022 Mar 202023 Mar 202024 Mar 202025 Mar 202026 Mar 202027 Mar 202028 Mar 202029 Mar 202030 Mar 202031 Mar 2020 1 Apr 2020 2 Apr 2020 3 Apr 2020 4 Apr 2020 5 Apr 2020510152025303540
2019
2020

Spotlight topics

National and city governments have the opportunity to accelerate the switch to electric vehicles

In many countries, such as the US, state and city governments are leading the way.

Figure 98: Electric vehicle-related policies in selected regions

* Indicates that the policy is only implemented at a state/province/local level.
** Standards for chargers are a fundamental prerequisite for the development of EV supply equipment. All regions listed here have developed standards for chargers. Some (China, European Union, India) are mandating specific standards as a minimum requirement; others (Canada, Japan, United States) are not.

Spotlight topics

Electric vehicles at a tipping point
Accelerating sustainability trends

Over half the world now lives in cities, and the pandemic is causing people to rethink where they live and how they prefer to move around. This has opened up new opportunities to rethink urban space to create safer spaces for walking and cycling.

So far there is little evidence that the economic crisis will reverse progress on electric vehicles. The transition will likely accelerate once the sector gets back on its feet.

Climate action

Shifting to 100% electric vehicles is a priority for climate action. An electric and pooled ride-hailing trip can reduce emissions by about 70% compared to the average private car trip today and the gap is growing as the power sector gets cleaner.

Many governments are considering “cash for clunker” programmes to help reboot the economy. It is critical that such policies provide support to electric vehicles rather than internal combustion engines, or progress could be delayed by years.

Radical partnerships

The community engagement and cooperation being developed during the pandemic can be repurposed in the recovery, e.g., for re-wilding our urban spaces. Electric vehicles and the supporting infrastructure can be a part of this urban transformation.

A wider public discussion is needed about the nature of our cities and the role of mobility. On the one hand, more people recognise the need for clean air and safer, greener urban spaces. On the other, it is likely that some will prefer to use cars over public transport while there is a risk of contracting COVID-19. Others will move further away from dense urban environments.

3.3

3.3 Technology is enabling the next generation of ultra-efficient buildings

The share of global emissions from buildings has been falling in recent years, but faster progress is needed

The energy intensity per square meter of the global buildings sector needs to improve on average by 30% by 2030 (compared to 2015) to be on track to meet global climate ambitions set forth in the Paris Agreement.

Figure 99: Global final energy use, buildings sector, global, 2000-2030
kWh per square meter
2000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024202520262027202820292030100110120130140150160170180190
Historical
30% by 2030
RTS
There is progress over time in making buildings more energy-efficient

A cooling degree day (CDD) is a measurement designed to quantify the demand for energy needed to cool buildings. Heating and air-conditioning systems have been getting more efficient, and new standards are coming into force in 2023.

Figure 100: Demand for building cooling, Europe, 1950-2018
Cooling degree days (CDD)
19501960197019801990200020105060708090100110120130140150160
Trend CDD
Weighted CDD
Figure 101: Performance standards for central residential air-conditioning, 1992-2023
Minimum standard cooling efficiency (index)
199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220239.51010.51111.51212.51313.51414.51515.5
Year
Southeast and Southwest
Rest of US

Spotlight topics

More consumers are able to manage their energy consumption more effectively

Annual investment in smart-grid technologies is rising fast. However, even within the US, some states have much higher adoption of smart meters than others.

Figure 102: Spending on smart meters and smart grids, global, 2014-19
2014201520162017201820190$2bn$4bn$6bn$8bn$10bn$12bn$14bn$16bn$18bn$20bn$22bn
Smart meters
Smart grids
Figure 103: Top ten states/districts by smart-meter penetration, 2018
DCPennsylvaniaNevadaMaineIllinoisGeorgiaMichiganOklahomaKansasCalifornia010%20%30%40%50%60%70%80%90%100%

Spotlight topics

Efficient lighting is now a mainstream technology
Figure 104: Lighting efficiency, by type, 1930-2020
19301940195019601970198019902000201020202030020lm/W40lm/W60lm/W80lm/W100lm/W120lm/W140lm/W160lm/W180lm/W200lm/W220lm/W240lm/W260lm/W
Low-Pressure Sodium
High-Pressure Sodium
Mercury
Fluorescent
OLED
Halogen
Incandescent
LED
Figure 105: Global lighting sales, by type, 2010-19
2010201120122013201420152016201720182019010%20%30%40%50%60%70%
LEDs
Fluorescents
Other

Spotlight topics

The number of net-zero energy buildings is growing rapidly
Figure 106: Net-zero buildings, US and Canada, 2012-19
Number
20122014201620182019050100150200250300350400450500
Emerging
Verified
Building regulations are getting tougher
Figure 107: Floor space covered by benchmarking or disclosure requirements, US, 2009-20
Share of total commercial floorspace
20092010201120122013201420152016201720182019202002%4%6%8%10%12%14%
Net-zero building materials are essential to limiting emissions from the sector

For new buildings, materials are the key to reducing emissions. Different materials have widely different climatic impacts.

Figure 108: CO₂ emissions from the building sector, by source, 2015-50
Building materialsBuilding operations010%20%30%40%50%60%70%80%90%
Figure 109: Direct CO₂ intensity of cement under different scenarios
Tonne direct CO₂ / tonne cement
20202030204020500.150.20.250.30.350.40.450.50.55
ETP B2DS
ETP 2DS
IEA/CSI 2DS
ETP RTS

Spotlight topics

Digital technology is enabling better building management systems

Advanced building management systems are increasingly popular, especially in the US.

Figure 110: Upcoming investments in the next 12 months
Fire and life-safety integrationSecurity system integrationBuilding management systems integrationLighting systems integrationSmart building equipment integration05%10%15%20%25%30%35%40%45%50%55%60%65%
Share of companies polled

Spotlight topics

Better buildings also have a range of economic and social benefits

Buildings have extensive socio-economic impacts. In many cities houses have been getting smaller as land costs rise, with negative effects on welfare.

Figure 111: The benefits of sustainable buildings
Figure 112: Top social reasons for building green
Occupant health/wellbeingSustainable business practicesWorker productivitySense of communitySupport domestic economy010%20%30%40%50%60%70%80%
Share who believe reason is important

Spotlight topics

Technology is driving the next generation of ultra-efficient buildings
Accelerating sustainability trends

Net-zero buildings should be a central focus of economic recovery plans. The technology required to enable net-zero carbon, smart buildings is ready for the mainstream. Plus, energy efficiency in the home and other smart-energy investments are among the most cost-effective and job-intensive available.

Our collective experience indoors during lockdown is a reminder of how this push for net-zero buildings is part of a wider conversation about quality of life and wellness at home, in the workplace and across our lived experience in cities.

Climate action

Regulators will need to adapt to new realities and needs. For instance, product material standards are needed for net-zero-carbon building materials. Policies will need to enable a growing role for wood in construction whilst tackling emissions from cement and concrete.

Radical partnerships

Technology is also enabling safer, more comfortable homes that help to connect people. Beyond the traditional buildings and construction sector, this provides opportunities for a wide variety of technology, equipment and service companies.