Preparing the construction industry for net-zero

The United Nation’s COP28 climate change conference wrapped up in December with an agreement that signals the ‘beginning of the end’ of the fossil fuel era. One of the key announcements was the unveiling of a new plan to reduce emissions in the building and construction industry.

The Buildings Breakthrough, launched with the support of 27 countries, aims to make ‘near-zero and resilient buildings’ the new normal by 2030, addressing the fact that the building sector alone accounts for nearly 40 per cent of global energy-related CO2 emissions, 50 per cent of extracted materials, and one-third of global waste.

While Australia is not currently among the supporting nations, the announcement highlights a strong global shift towards sustainability – and how Australian construction businesses need to be prepared to meet more stringent carbon reduction targets moving forward.

For larger construction firms with a focus on net-zero or emissions targets, the move towards using sustainable equipment is gaining momentum. Battery-powered equipment, for example, not only reduces carbon emissions but also minimises noise pollution, providing a quieter and more environmentally friendly construction environment.

Hydrogen is emerging as a viable alternative power source, further reducing emissions and contributing to a greener construction landscape. Hydrogen fuel cells produce electricity through a chemical reaction with oxygen, emitting only water vapour as a byproduct. This eliminates harmful emissions and positions hydrogen as a promising alternative to traditional fossil fuels.

The world’s OEMs are also exploring a range of alternative power sources, including hybrid systems and advanced biofuels. Hybrid construction equipment combines traditional engines with electric or other alternative power sources, optimising energy efficiency and reducing overall environmental impact. Innovations such as lower-emission generators, solar battery generators, and solar-powered light towers are becoming an increasingly common sight on construction sites.

Solar battery generators provide a renewable and silent power source, reducing the reliance on traditional fossil fuels. They are particularly valuable for remote construction sites where access to the grid may be limited. The ability to store solar energy allows for continuous power supply, even during periods of low sunlight.

As technology advances and economies of scale come into play, the economic viability of cleaner alternatives is improving. While the initial investment in eco-friendly construction equipment may be higher, the long-term operational and environmental benefits make these alternatives increasingly attractive to construction companies looking to future-proof their operations.

While larger tier-one companies are taking the lead on sustainable practices in Australia, small and medium businesses may face challenges in achieving something similar. Fortunately, with new technologies and innovations entering the market to cater to tier-one customers, these will flow on to other end users of hire equipment.

Even something as simple as implementing a more comprehensive recycling program on construction sites to segregate and recycle materials like metal, cardboard, and plastics can help. No matter what size business you have, it’s possible to minimise waste by optimising material usage, reusing materials where possible, and responsibly disposing of construction debris.

Another important factor is ensuring your team members are aware of and on board with your moves towards a more sustainable construction practice. Consider providing additional training programs to educate construction workers about sustainable practices and the importance of reducing environmental impact. Foster a culture of sustainability within the organisation by promoting awareness and responsibility among employees.

Transport is another important area to consider, especially if workers are travelling long distances to reach your construction site. Encourage the use of fuel-efficient vehicles and promote carpooling among construction workers. The Australian government is pushing forward with a raft of initiatives aimed at reducing the cost of EVs and encouraging the transition towards a greener future.

Where possible, invest in the next generation of electric or hybrid vehicles for transportation needs on construction sites, and keep an eye out for any new announcements from the Australian Government about possible subsidies or cost-reduction for eco-friendly transport options.

Rules on EVs can vary state by state. For example, the Queensland government is offering rebates of $3000 or $6000 for eligible Queenslanders and businesses purchasing new Zero Emission Vehicles (ZEVs). The NT also has an Electric Vehicle Charger Grants Scheme, which allows businesses to apply for funding to buy and install a charger, with grants of up to $2500 available for businesses.

COP28’s commitment to transforming the building and construction sector has set the stage for a net-zero future. This isn’t the time for greenwashing or half-baked ideas: the future of our planet is at stake. So let’s all work together to make long-term, effective changes that will make a genuine difference in the race to net-zero.

About the author

James Oxenham is the CEO of the Hire and Rental Industry Association (HRIA) and the Elevating Work Platform Association (EWPA). Having worked across the UK, Europe, and Australia, James brings over 15 years of extensive industry experience to his role with the hire and rental sector’s peak industry body. With a background in management accounting, he has held pivotal roles at TUI AG Services Group (Spain), The Royal National Lifeboat Institution (UK), BB Retail Capital, and Aldi Stores in Australia.