Construction Industry: The Climate Change Challenges
The global economy’s near-term outlook is hampered by rising inflation and supply-chain constraints, and the Omicron variant continues to pose a concern. But as Oxford Economics anticipates in a recently released worldwide prediction titled “The Future of Construction,” the worldwide construction industry is predicted to lead the global economic recovery from the pandemic, growing at a higher rate than the industrial or service sectors over the longer run.
Global construction industry spending is predicted to increase by US$4.5 trillion over the next decade, reaching US$15.2 trillion by 2030. Only four nations — China, India, the United States, and Indonesia — will account for over 60% of this increase, while the top ten global construction markets will account for nearly 70% of growth over the same time.
Consumers are projected to release a share of the massive accumulation of surplus household savings throughout the developed world — equal to more than 10% of GDP in North America — and propel economies to support accelerated expansion in the home building sector. A further surge in building demand will result from greater infrastructure investment, bolstered by major stimulus programs aimed at reviving post-pandemic economies.
However, climate warming and the drive to Net Zero are the building industry’s biggest concerns, but they will provide new deconstruction possibilities. There is a tremendous need to reduce the carbon footprint of new development which is driving the emergence of the deconstruction sector, which will repurpose construction material stockpiles.
Infrastructure that is both sustainable and of high quality is a catalyst for economic development and social progress, and it enables the achievement of the Sustainable Development Goals (SDGs) and Paris Agreement obligations. By 2020, ESG-related financing for infrastructure will have increased by 28 percent, owing in large part to an increase in fundraising for sustainability-related initiatives.
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