Sustainable Construction in Cities – Turning the world’s building sector!

In the wake of rapid urbanization, the global building stock is expected to double in the next 30 years. Thereby, the construction sector is one of the most resource intense and environmentally damaging industries in the world. At the same time, a backlog in the provision of decent housing for all is becoming more and more apparent. If conventional materials were to continue to be used, this would consume up to 80% of the CO2 emissions budget of the 1.5-degree target. Today, the construction and operation of buildings worldwide makes up 40% of all energy-related greenhouse gas emissions. Construction waste accounts for up to 60% of the national annual waste volume. To make matters worse, cities are finding it increasingly difficult in mobilizing finance to face these challenges. Simultaneously, we experience the rise of the urbanization of poverty: nearly a quarter of the world's urban population - almost 900 million people - live in informal settlements. This makes it very clear: the amount of future construction is at the same time challenge and chance to create a city that supports the future of humanity. How we shape the built environment first and foremost in our cities is key to reach climate and social development goals. Alternative credit assessment for low-income households and informally employed borrowers must be taken into consideration. Socially integrative and climate-neutral approaches must be found with the close involvement of the private construction and financial sectors. Within the event, we will therefore bring together actors from different backgrounds and levels. The German Federal Ministry for Economic Cooperation and Development (BMZ) will give insights on their integrative approach of sustainable urban development.  The next input, held by the Rwanda Housing Authority will give insights on how informality can be formalized and how sustainable approaches on the national level help to do so. This input will be followed by a panel discussion, to dive deeper in that topic including contributions by BMZ, Rwanda Housing Authority, UN-Habitat and UNEP. A second input will highlight experiences from Mexico in financing sustainable homes. The second panel discussion will further include contributions from REALL, at the interface of housing finance and environmentally viable solutions, and the World Bank, rounding it up with insights on financing large-scale urban construction measures and integrating social and environmental aspects into these approaches.